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Understanding the importance of a Compliance Monitoring Plan: An expert interview

Compliance Monitoring Plan
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As regulatory compliance continues to become more complex, having a robust monitoring plan in place is more important than ever. To help us understand why, we spoke with Neopay’s Consultancy Manager, Margita Layne. With extensive experience as a former Money Laundering Reporting Officer (MLRO) and Head of Compliance in the payment sector, Margita brings valuable insights into the significance of a Compliance Monitoring Plan and how it can benefit businesses of all sizes.

Margita, why is having a Compliance Monitoring Plan so important for businesses today?

In today’s regulatory environment, compliance is not just about ticking boxes; it’s about ensuring your business operates within the law and meets all necessary standards. A Compliance Monitoring Plan helps you stay on top of regulatory requirements by systematically assessing your entire business operations. It’s essential for identifying areas where you may be falling short and taking action to address those gaps. With regulations constantly evolving, a monitoring plan ensures that businesses remain compliant and avoid any potential penalties or legal issues.

Can a Compliance Monitoring Plan be used for more than just adhering to FCA regulations?

Absolutely. While the primary focus might be on FCA regulations, a good Compliance Monitoring Plan goes beyond that. It can serve as an internal assessment tool for the whole business, checking for adherence to both internal policies and external regulations. This comprehensive approach helps ensure that all aspects of the business are aligned with the current standards and best practices, which ultimately supports the overall governance and performance of the organisation.

How does a Compliance Monitoring Plan help with keeping registrations and certifications up-to-date?

Keeping registrations up-to-date, whether for Anti-Money Laundering (AML), APP fraud prevention, or Data Protection with the Information Commissioner’s Office (ICO), is crucial. A Compliance Monitoring Plan can include regular checks to ensure that all necessary registrations and certifications are current. This proactive approach prevents lapses in compliance that could result in regulatory breaches or reputational damage. By maintaining a detailed log of all regulatory obligations, businesses can ensure they remain compliant and up-to-date with their requirements.

How does the plan help businesses manage new activities or initiatives?

When a business decides to expand its services or undertake new initiatives, it must ensure these activities are within the scope of its existing FCA permissions. A Compliance Monitoring Plan can help by reviewing these new activities to confirm alignment with regulatory requirements. This means you’re not just reacting to compliance issues after they’ve happened; you’re proactively ensuring that all new business ventures are compliant from the outset. Additionally, the plan can track the progress of regulatory projects, like meeting the new Consumer Duty requirements, ensuring they are implemented correctly and on time.

What about regulatory reporting? How does a monitoring plan help in this regard?

Regulatory reporting has indeed become more demanding over the past few years. With an increase in the number of reports required, it’s easy for businesses to fall behind. A Compliance Monitoring Plan can include checks to ensure that all regulatory reporting is up-to-date and accurate. This is crucial for demonstrating transparency and a commitment to compliance. Keeping on top of reporting requirements not only helps avoid fines but also positions your business as a trustworthy and compliant entity in the eyes of regulators.

Can a Compliance Monitoring Plan help businesses keep track of their strategic initiatives?

Definitely. One of the benefits of a Compliance Monitoring Plan is that it can be used as a tool to track the progress of various projects and initiatives. This helps ensure that nothing falls through the cracks, particularly in a fast-paced business environment where priorities can quickly shift. By tracking initiatives and their compliance implications, businesses can ensure they are consistently moving forward and not overlooking any critical compliance requirements.

How does a monitoring plan contribute to a company’s overall performance?

A well-structured Compliance Monitoring Plan can significantly improve a company’s overall performance. By regularly conducting thorough checks and assessments, businesses gain a clear understanding of their current compliance status and where improvements can be made. This proactive approach not only helps in achieving and maintaining regulatory compliance but also in optimising operations. It creates a culture of continuous improvement, which is vital for any business looking to succeed in today’s competitive market.

Finally, Margita, what would you say to a business that has yet to implement a Compliance Monitoring Plan?

I would strongly advise them to consider implementing one as soon as possible. Whether you’re a small business or a large organisation, having a Compliance Monitoring Plan is crucial for ensuring your operations are in-line with regulatory expectations. It’s not just about avoiding fines or penalties; it’s about safeguarding your reputation and building a sustainable business that can navigate the complexities of today’s regulatory landscape. The benefits are clear: identifying areas of noncompliance, improving overall performance, and maintaining a strong compliance posture. It’s an investment that will pay off in the long run.

How Neopay can help

With the ever-changing regulatory landscape, staying compliant can be a challenge, but as Margita Layne has explained, an effective Compliance Monitoring Plan can provide businesses with the tools they need to remain on top of their compliance obligations and thrive in today’s market.

If your business is looking to strengthen its compliance framework or needs guidance on implementing a Compliance Monitoring Plan, don’t hesitate to reach out to Neopay. Our team of experts is here to help you navigate the complexities of regulatory compliance and ensure your business is always one step ahead. Contact us today to learn more about how we can support your compliance needs.

 

About Margita

Margita Layne brings over a decade of experience in compliance within financial services to her role at Neopay. Previously serving as Head of Compliance and MLRO at an industry-leading e-money firm, as well as holding various compliance and managerial positions at CFD/FX brokerage institutions and asset management companies. Margita’s extensive experience and Master’s Degree in Finance, Banking and Investments enable her to provide exceptional advice and assistance to clients in meeting their regulatory and compliance needs.

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