Section 4

Amplifying Your Impact

MoreHide Arrow Down Icon Icon of solid caret pointing downwards.

Set and Beat Your Benchmarks

See how your compliance program stacks up against your peers and learn new strategies to increase the effectiveness of what you’re already doing. 

MoreHide Arrow Down Icon Icon of solid caret pointing downwards.

Achieving an effective ethics and compliance program requires more than simply adding rules and additional layers of controls. There must be an integrated effort that aligns financial and compliance requirements with the organization’s mission and values. The steps you take as a compliance professional should not be in isolation of your organization’s larger business objectives but in support of them.

Along with aligning with organizational goals, your compliance program can compound its impact by focusing on industry best practices that maximize efforts. This section will highlight the latest best practices in the use of technology, program automation and industry benchmarks to amplify the impact of key compliance program elements.

The Power of Documentation & Paper Trail in Handling Compliance Matters

In order to detect and prevent non-compliance within an organization, robust documentation is seen as a critical piece for risk adversity. Here's insight as to why documentation is so important and tips on how to be better prepared for audits and other unforeseen circumstances.

Anniee Thavamanii, Head of Legal & Compliance at Okachi (M) 07/21/2017

In order to detect and prevent non-compliance within an organization, robust documentation is seen as a critical piece for risk adversity. Here's insight as to why documentation is so important and tips on how to be better prepared for audits and other unforeseen circumstances.

Never Underestimate the Power of Documentation & Paper Trail in Handling Compliance Matters

As a Compliance Officer (CO), the ultimate responsibility is to manage a system designed to detect and prevent non-compliance of rules, regulations, and guidelines. Therefore, a robust documentation and paper trail will act as a shield to a CO in the event of unforeseen circumstances where his/her accountability or liability is at stake.

There is a saying, “If you didn’t document it, it means you didn’t do it.”

Yes, this is absolutely true.

An analogy can be drawn between proper documentation and the recent case of Thomas E. Haider.*

A former Chief Compliance Officer at MoneyGram is liable under the BSA (Bank Secrecy Act) for failing to ensure that MoneyGram implemented and maintained an effective AML (anti-money laundering) program and filed timely SARs (suspicious activity reports) with FinCen (Financial Crisis Enforcement Network). The base of the case was that, although Haider had direct oversight over its compliance functions he failed to implement the required policy for terminating and disciplining the agents and outlets that presented a high risk of fraud.

In a statement, Haider said that he supported the proposal to terminate and discipline the fraudulent agents, which was eventually overruled by management. He also added that the AML programs audited by state regulators were deemed satisfactory.

A CO is able to protect their accountability or liability for violation in compliance matters by developing professional standards to govern their responsibilities and ethical requirements.** Through my past experience, the above standards must be well documented and must be discussed and deliberated in Board meetings. Furthermore, the CO’s accountability and liability must be disclaimed and be limited.

Carla Rinaldi quoted that, “Documentation is not about what we do, but what we are searching for.”

Therefore,

  • What if Haider had a proper documentation and paper trail established to prove that such recommendations have been escalated to the relevant department and deliberated to the Board?
  • What if he could prove the recommendations were expressly rejected despite the fact that the consequences of such non-compliance was strongly highlighted?

Perhaps, today Haider would be chargeless and discharged from the accountability and liability of paying a hefty civil penalty of $250,000.00 for failure to implement and maintain an effective AML Program and to file timely SARs.