Compliance Officers must provide ongoing reporting to the Board on the business’ compliance program as part of their ongoing duties. The Compliance Officer must attest that the business is compliant with regulations or provide reasons for exceptions.

This begs the question: how should Board members ensure their governance duties are being fulfilled adequately in relation to compliance oversight? Here are some simple dos and don’ts to consider:

Do’s

The Board should conduct (at minimum) an annual minuted meeting to discuss the company’s overall compliance program.

The Board should approve all critical compliance functions for example, the AML policies and procedures.

The Board should always lend their support to the company’s Compliance Officer to ensure all staff members are following regulations and are well trained, thus creating an AML organizational culture.

The Board should make certain any new products/services being instituted within the company are vetted and possible ML threats are identified, and suitable controls are put in place.

The Board should understand and approve the independent audit function and ensure a mitigation plan is in motion- to remedy the deficiencies highlighted in the independent audit.

The Board should onboard an experienced and well trained MLRO/CO.

The Board should understand the nature of suspicious transactions uncovered including those that were filed and find ways to implement proper monitoring systems. The Board should offer timely feedback to the Compliance Officer requests and queries.

Don’ts

The Board should not adopt a “hands off” approach to compliance reporting or have a laissez-faire attitude towards compliance.

The Board should not engage in any activities that expose the company to ML threats which can cause reputational/legal risks.

The Board should not implement compliance strategies unaware to the Compliance Officer or without seeking their professional counsel.

Board members should not hold the position as Compliance Officer, this function should be independent and at times can be outsourced depending on the nature of the business.

The Board should not employ new board members are senior management without screening or conducting the necessary due diligence on the individual.

Offering premier business solutions, Wiltshire Consultancy International offers this service among many others, and our team is qualified with the relevant experience to ensure your company is following the regulatory standards. Email us today to get started to learn more about our services at [email protected]