ICAS Topics International Standard
Employers and providers face the challenge of complying with an increasing number of regulations that affect business practices. all kind departments are stepping up their plans for compliance audits, and the fines and penalties associated with violations continue to increase. Faced with such difficult regulations, businesses are forced to consider the potential benefits of having an effective compliance program.
While developing and employing such programs requires ongoing company resources, the potential benefits far outweigh these initial costs. A well-designed compliance program will ultimately save money, create a more productive working environment for employees, and result in better outcomes when compliance audits and reviews are performed.
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Effective, measurable success is key for anyone that undertakes the development of a compliance program. The first step forward is to review current business practices and to identify areas of concern. Afterward, an individual should be named to the role of compliance officer, or a committee of compliance members should be formed.
After the key personnel have been identified, a written document should be created that outlines your various compliance policies and procedures. After the written policy is finalized and well-documented, a training program should be conducted in order to help employees understand their requirements and their role in preventing compliance violations
Once training has been completed and any necessary safeguards have been implemented, employees should be able to perform their day-to-day functions with greater speed and more confidence. Whereas employees may have previously been unsure of how to comply with ICAS regulations, clear, written expectations and procedures will enable employees to move through their daily required tasks with assurance.
When a compliance issue arises, employees will know how to react and where to direct a question or concern. Employees that are well-versed in the law and its requirements will also be better able to identify compliance concerns.
Your ICAS Compliance Program must include, at a minimum, the following:
First, your business should formally adopt an AML Compliance Program. This Guide can serve as the basis for that program, however, you must check with your local regulations for the specific requirements for adoption of a Compliance Program. form that can be used to certify adoption of such a program.
Second, your business must designate a Compliance Officer. The Compliance Officer may be an employee who has other duties at your business, but it should be someone in a responsible position. The Compliance Officer is responsible for your business’s day-to-day compliance with the AML laws and regulations, and for ensuring the Compliance Program is updated as needed. The Compliance Officer is also responsible for overseeing your business’s ongoing education and training program. When you designate a Compliance Officer, verify that the qualifications of that person meet the local requirements and document it accordingly. You can complete the sample Designation of Compliance Officer form shown and then retain it in your AML compliance files.
Third, your business must adopt policies and procedures for the identification and reporting of Suspicious Activity and High Currency Amount Transaction Reports. You must check with your local regulations for these thresholds and what it considered to be a suspicious transaction as well as the allowable time delays to report such activity. If you’re business plans to impose stricter thresholds than those required by your government, those should be included in your Compliance Program.
Fourth, your business must establish an ongoing employee-training program for all employees who will have any involvement with the activities. The education and training should include instruction on the employees’ responsibilities under the program, as well as the detection of suspicious transactions. One good tool for training is this Guide. All employees should be required