Ensuring Regulatory Compliance: The Importance of Regular Review and Approval of Compliance Programs

Posted in Crypto Asset Compliance on March 5, 2024
Ensuring Regulatory Compliance

Ensuring regulatory compliance is fundamental for businesses to operate seamlessly, avoid legal repercussions, and maintain a reputation of trustworthiness in the market.

Regular review of the compliance program enables management to identify new regulatory requirements that need to be embedded in the compliance program, and allied compliance policies and procedures. 

Regulatory authorities issue various regulations, guidelines, frameworks, and amendments to existing regulatory requirements for institutions, that need to be timely identified for understanding and embedding in the internal compliance environment. 

Ensuring Regulatory Compliance

Ensuring Regulatory Compliance

The compliance team reviews new applicable regulatory requirements and ensures that actionable points are embedded in the compliance program, to avoid regulatory breaches and potential fines. 

The updated compliance program and allied policies are required to be reviewed by the compliance committee and the board of directors. The committee and board need to approve such programs and policies, for meticulous compliance by the employees of the institution. 

The regulatory inspection team also checks the sufficiency of compliance programs, policies, and procedures. They also provide recommendations for the improvement of the compliance program, policies, and internal controls to ensure that significant regulatory requirements are covered for compliance purposes.

Ensuring Regulatory Compliance

Final Thoughts

In an ever-evolving regulatory landscape, the meticulous review and continuous updating of compliance programs are paramount for institutions. This proactive approach not only aids in identifying and integrating new regulatory requirements but also fortifies an institution’s stance against potential breaches and resultant fines. Equally crucial is the role of the compliance committee and the board of directors, whose endorsement signifies a unified commitment to adherence. Furthermore, feedback from regulatory inspection teams offers valuable insights, fostering enhancements in compliance measures and ensuring all significant regulatory mandates are comprehensively addressed.