I’ve discussed the risks of creating “compliance silos” for processes requiring regulations by focusing on single compliance programs instead of leveraging a total risk-based compliance solution. A comprehensive solution for corporations should encompass a broad range of your industry's federal regulations and compliance requirements.
Consider, then, establishing a standard for new customer or supplier relationships by combining your regulatory screening and compliance systems for the following:
Below are five business compliance programs along with the process and master file impacts. Additionally, a sample of internal control tests that can be conducted in a combined program has been included.
This approach reflects the benefits that can be gained by taking a complete risk management approach to your company’s compliance requirements.
Compliance Program | Process Impact | Master File Impact |
---|---|---|
Anti-money Laundering (AML) | AR, AP, T&E, and Payroll | Customer Supplier Employee |
Know Your Customer (KYC) | AR | Customer |
Foreign Corrupt Practices Act (FCPA) | AP, T&E | Supplier Employee |
UK Bribery Act Regulations | AP, T&E | Supplier Employee |
Office of Foreign Asset Control (OFAC) | AR, AP, T&E, and Payroll | Customer Supplier Employee |
Sample Internal Control Tests