Your Risk Management and Compliance Programme doesn’t need to break the bank.

• 2018-08-15
• Business, Compliance
• David Harrowsmith

In this article I discuss some of the high-level requirements Accountable Institutions (AI) need to put in place to become compliant with the new Financial Intelligence Centre Amendment Act. Although a seemingly daunting task, I discuss some of the templates and solutions available to AI’s so as not to break the bank and put the requirements in place over a 3-4 week period.

A joint statement has been issued by the respective Regulators on the implementation date of FICAA – which has been confirmed as 2 April 2019.

To lay a regulatory compliant foundation to any rapidly growing business, one of the immediate challenges is to become FICAA compliant in preparation of the deadline of 2 April 2019.

HOW CAN YOU DO THIS WITHOUT BREAKING THE BANK?

The RMCP document is a living document which needs to adapt, change and remain relevant based on the current reality within an Accountable Institutions life. The trick is to define and develop an RMCP that ensures the measures to detect, prevent and/or mitigate financial crime which are comparable to the Accountable Institutions’ risk exposure, through defining proportionate practices which will allow resources to be directed in accordance with priorities so that the greatest risks receive the highest attention. The overall aim of risk management is to ensure that organisational capabilities and resources are employed in an efficient and effective manner to manage both opportunities and threats.

There are six key components to the RMCP, which are: Financial Crime Risk Assessment; Risk Based Approach and Methodology; Risk Management Methodologies; Policies and Internal Rules; Training, and; The Risk Management Framework.

Developing an RMCP can appear to be a daunting task, however, with the right approach and templates, this can be a quick exercise which results in a robust RMCP capable of growing and improving as your business grows and improves.

The Monivation team have developed templates and questionnaires that can be used to quickly work through the 6 requirements of an RMCP and provide a Regulator-ready pack within a 3-4-week period. Through extensive experience enabling both FICA and now FICAA within Accountable Institutions, the team can guide you through developing a fit for purpose RMCP that’s right for your business.

Article written by:

DAVID HARROWSMITHCo-Founder & Chief Executive Officer