Matthias Dennig/ March 21, 2019/ Uncategorized

International Compliance

In many countries the number of compliance laws and regulations has multiplied over the last decade. This has led to major discussions and a rapid development of the compliance sector. The pressure is high, but it goes without saying, that all national laws and guidelines must be complied with. For international business, things get even more complicated.

While an international business model greatly increases the number of potential customers and promises further growth and revenue, it also requires compliance with various sets of legal regulations and the capability to deal with different compliance cultures.

Subsidiary companies and business partners in different countries increase cross-border risks. Easily, good business can turn into a scandal, which multiple banks had to face in recent years including one of the biggest German banks. Compliance on all levels has to be ensured to prevent penalty fees, loss of reputation and trust. No question, things are often tricky. Certain information, for example sanction lists or certain private data, can’t be shared freely. So, continuous monitoring and careful assessment of indications and red flags should be followed up and taken very seriously.

Priorities often differ, so compliance does not have the same significance in every country.

For instance, in the rapidly developing Asian-Pacific and in emerging markets, compliance does not appear to be the top priority unlike in Europe and the USA [1]. However, winning new customers seems to be the biggest challenge worldwide. Therefore, it is not surprising that improving customer service is seen as the number one investment priority [1].

An efficient compliance solution also helps here. Having higher compliance standards than required will enhance trust and reliability. This benefits attracting new customers and business partners and can open potential doors to higher regulated markets.

Whether on international, multinational or national level, compliance is highly complex and bears the risk of high penalties for non-compliance. Thorough assessments of compliance risk exposure can help to create a risk analysis in order to counteract and prevent damage in good time. Follow us for more information.

 

References:

[1]https://www.pwc.com/gx/en/banking-capital-markets/banking-2020/assets/pwc-retail-banking-2020-evolution-or-revolution.pdf

Photo by NeONBRAND on Unsplash

Matthias Dennig

About Matthias Dennig

Matthias Dennig works as a presales and consulting expert for the product SMARAGD aces360. His area of responsibility includes advising prospective clients and supporting the introduction of the SAP BIS based product SMARAGD aces360. For more than 15 years he has worked as a project manager in the compliance environment for targens GmbH in various major projects in Germany and other countries.