No matter what size your Firm is, or the industry sector in which you operate, there will still be times when as a regulated entity your compliance team will need support. In the financial centres of the DIFC and the ADGM, there are many firms that outsource their Compliance and MLRO functions to ensure they get the level of expertise required without the financial burden of a full-time resource, which is sometimes just not needed given the size and complexity of the operation.
Even if you have a full-time resource, there are times when Compliance Officers require assistance
Outsourcing can be to external third parties or internally back to the head office. In the latter example, many non-resident Compliance Officers employ outside consultants to review the business being undertaken in the UAE to ensure that out of sight isn’t always out of mind. Even if you have a full-time resource there are times when Compliance Officers require assistance, even if this is to obtain an expert view on an issue or provide an independent review of the business and its operations.
When international businesses are asked about one of their greatest Compliance/AML risks, many would say small remote offices, whereas other regional firms may highlight maintaining the independence of the Compliance function. However, all will note the speed, frequency, and complexity of changing regulations. It is for these reasons that firms partner with CCL on an on-going basis to ensure that day-to-day, the firm remains compliant with regulatory expectations and has the expertise on hand to address any new regulatory initiatives.
What are the questions you should be asking yourself?
There are some key considerations when reviewing your current compliance arrangements or planning for a new firm with a new team, including:
- Have you got a person who is qualified enough to take on the role of the Compliance Officer/MLRO?
- Do you require a full-time resource?
- Is your Compliance function independent enough from the business?
- Does your Compliance function have specific regional knowledge and expertise?
We have summarised the key considerations and compared outsourcing your compliance function to having an in-house compliance resource. For further details, click here.
If you identify a need for an external resource either to act as your Firm's Compliance Officer/MLRO or to support your current function, CCL can assist.