4 Steps Financial Enterprises Need to Take for Compliance

By Cory Maki Cory Maki has been verified by Muck Rack's editorial team
Published on August 17, 2022

Image from Pixabay – CC0 License

Compliance is a key issue for any regulated industry, but it’s often more important in financial organizations than in any other type of business. There are many issues relating to compliance that financial enterprises need to pay attention to in order to conduct their business legally. Following the relevant regulations protects their customers and clients, but it also ensures that the business itself is protected too. With the broad range of compliance matters to follow and monitor, there is a lot of work to carry out to ensure compliance across the board. However, there are some steps that financial enterprises can prioritize.

Register in the Right Places

In a regulated market, a new organization can’t simply start trading. There are often requirements and regulations to follow when it comes to registering or even gaining approval to start trading. There may be several bodies that an enterprise needs to be registered with or have approval from. In the USA, a money services business must register with the Department of Treasury. In the EU, LEI number registration is necessary for transactions in financial markets involving securities or derivatives. It’s essential to get set up by registering in the right places and being aware of the regulatory bodies that oversee financial institutions.

Know Key Compliance Regulations

Getting familiar with key regulations related to financial compliance is a must for any financial enterprise. There are plenty of regulations specific to certain countries or geographical regions. For example, in the UK and EU, the Markets Abuse Regulation is a key regulation to know. In the US, it may be important to be aware of the Commodities Future Trading Commission and their regulations, as well as the Financial Industry Regulatory Authority (FINRA). Different types of financial enterprises may be subject to different regulations, depending on their main area of focus.

Image from Pixabay – CC0 License

Put Together a Compliance Team

Compliance is a complicated issue that isn’t just a one-time job. It’s essential to stay on top of compliance, especially in an industry such as finance. That’s why a good compliance team is a must for any financial enterprise. Compliance teams can ensure the whole organization is following regulations, from top to bottom. A compliance department should be set up to take care of key compliance issues. This department won’t necessarily watch over all things related to compliance. For example, the HR department will be responsible for compliance issues relating to staff relations.

Use the Right Tools for Compliance

Compliance, like many other things, is easier to manage with the right tools. When you have important compliance tools in place and everyone using them is trained in their use, it’s simpler to track key information and stay on top of all compliance issues. Financial compliance software can help with a range of tasks, from screening to detect financial crime to managing regulatory changes. There is a range of tools that can work for financial institutions to maintain compliance.

Financial enterprises need to carry out a broad range of tasks to maintain compliance. It’s vital to protect the company, customers, and more.

By Cory Maki Cory Maki has been verified by Muck Rack's editorial team

Cory Maki is a former Staff Editor and the Business Development Manager at Grit Daily.

Read more

More GD News