11 Common Pitfalls
This is the third part in a series on truths about global compliance. This installment provides a rundown on some of the most common compliance failures. Read Part 1 and Part 2, and download the full version from TMF Group to learn more.
Compliance is a mandatory aspect of doing business. It should be conducted as humanly as possible in an error-free way and with rigorous oversight. Inexperienced organisations operating without a global service provider to help them manage compliance can fall foul with alarming regularity. Here are some of the major failures we encounter when on-boarding new clients and surveying the market.
Underestimating the Consequences of Failure
Mistakes in compliance may incur fines. In some jurisdictions, even prison sentences are a possibility. Official sanctions are just the start. A failure in compliance can have wide-reaching commercial and reputational implications. Depending on the jurisdiction, the status of “noncompliant” would become public information. Rating agencies and financing companies will use the information in their credit assessments. Existing customers may notice such, leading them to change their provider and hence a loss of business.
Overlooking Unique Requests
Some jurisdictions will require unusual levels of demands….
