FCPAméricas Blog
Where FCPA Compliance Fits Within An Organization
2.19.2013
This post is the second in a series that relates to comments made by top AML compliance officers from banks and financial institutions like Citigroup, American Express Bank Mexico, and CapitalOne. These comments were made at the 2013 Anti-Money Laundering Compliance Conference organized by the Florida International Bankers Association (FIBA). An earlier post summarized the panelists’ descriptions of the ideal compliance officer.
The compliance officers discussed where and how compliance functions should fit within a financial institution. As you will see, these comments could just as easily be made about FCPA compliance officers:
“The role of the compliance officer is one where you should be embedded in every function of the organization, especially operations. If you do not know how something works at the company, it is hard for you to be a good compliance officer.”
“Right now compliance is too important not to have your compliance officer as an organizational leader. That person should not be in a silo.”
“When compliance officers sit on committees, they get to hear the other business priorities under discussion. When compliance officers understand where the business is going, they can understand objectives and see where compliance fits in.”
“A compliance officer should sit in on most committee meetings. In some, she might have less of a voice than in others. In some she might be more like an observer. In others, like the Regulatory Committee, she might be more involved. But by participating in most meetings she will still be able to be apprised of all business practices.”
“In my bank, the CCO has to meet with the CEO on a monthly basis. The CCO brings in key compliance people. The CEO brings top executives from other areas. Together we discuss the top risks facing the firm.”
“When setting risk tolerance levels, decisions should not be left solely to the business side. Compliance must be able to make known what the actual risks are that the company is facing so that the business can make an informed decision.”
“Rather than just saying no to business opportunities, the compliance officer should make known what it would take to mitigate the risk. When company officials begin to understand the impact or risk of a new opportunity for the company, they might choose to pull back.”
“When considering new markets and product development, there should be a process whereby risk is analyzed. Is a control framework being built to address developments? Is compliance giving them the information to show it will cost this amount to make it sustainable? Companies need to make sure that innovation is done with full information on costs.”
As I listened to these speakers, I was struck by what their comments implied as much as what they stated. The comments above suggest that compliance officers should be senior enough to engage with top decision makers. They should also be experienced enough to understand the nuances of the business. In addition, the comments suggest that compliance offices should be staffed with well-trained people, capable of thinking creatively about their mission and reacting to a constantly changing business environment.
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© 2013 Matteson Ellis Law, PLLC
Post authored by Matteson Ellis, FCPAméricas Founder & Editor
Comments
February 19th, 2013 at 11:16 pm
[…] responds to a conference and maintains a position on self-reporting. The FCPAmericas blog explains where FCPA correspondence should fit within an […]