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The Compliance Function (The compliance personnel and function can and…
The Compliance Function
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The compliance function usually undertakes a monitoring program that checks that the business is complying with its own risk management procedures, all applicable laws, orders and codes of practice
The compliance function should keep a record of any breach and may maintain a breaches register for this purpose. A breaches register may assist the OSP to identify where there are procedural problems and possible trends
The compliance function usually works independently of the business and does not usually become involved with clients though this may not be the case in very small trust companies where this is not possible
It is usually recognised by regulators and practitioners in offshore jurisdictions that there are key regulatory principles that may and should be followed and included as part of the monitoring of services within the financial institutions and may include
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Potential sanctions for non-compliance of the required local regulatory regime are diverse but usually fall into three main categories
criminal - prison, civil, legal suit
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The compliance function is a key function and is sometimes defined as a required function in that all service providers will usually have a separate section or department focusing on this part of their business. It is about managing the business effectively and ensuring that the compliance function is embedded as an integral part of the day to day management of the activities of the OSP
The concept of compliance must start at board level should be a shred view all the way down throughout the different levels of the business from its strategy through to its operational activities. It should encompass the strategic business aims and link with the strategic activities being undertaken, those actions that are both internal and external to the organisation that have an impact on it achieving its overall mission or aim
The role of the board and senior management of an OSP is critical to its success by directing and supervising its affairs within a framework of prudent and effective controls which enable the OSP to be assessed and managed
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