Importance of Compliance

The compliance work is divided into two main pillars, which are the regulatory compliance and the money laundering prevention compliance. Regulatory compliance represents the legal and regulatory provisions that all financial and non-financial regulated entities must comply with. This is the basis for local and international reporting. 

Prevention compliance is the foundation of any compliance program, the cornerstone of which is a policy of "know your customer".. In it also resides continuous monitoring, client updates by risk level, "know your client's client" and "know your client's client".know your employee".

The Compliance Officer is a key executive within an organization. Given the importance given by law to this position, it is clearly established that it must be a "high executive level" position. That is to say, he/she must have direct communication with the board of directors, without depending on middle management that may interfere in his/her delicate work. Undoubtedly, his position is of the highest risk.

Fundamental factors

The Financial Action Task ForceThe International Money Laundering and Terrorist Financing Prevention Guidelines, an international organization that establishes guidelines for the prevention of money laundering and the financing of terrorism, introduces, in addition to the 40 plus 9 recommendations in this area, the risk-based approach factor, which is incorporated in most of the legislations worldwide. To properly implement this approach, the entity must establish a risk methodology and matrices from the client, products, services and operations. 

The other fundamental factor in any organization is the training. It is of utmost importance that all of the entity's personnel be trained in the prevention of money laundering and financing of terrorism. Mainly, the personnel that has relationship and contact with the clients, as well as the operations, risk and internal control personnel. Sanctioning regimeThe company's compliance policy, which includes administrative and criminal sanctions, not only for the compliance officer, but also for the rest of the personnel and the entity. It is informed and disclosed in the induction and training sessions, both to new personnel, and in the annual sessions, to the rest of the personnel. It is always important to emphasize that ignorance of the law does not exempt any employee of a regulated financial or non-financial entity from liability.