Proactive Compliance

Proactive Compliance refers to the best practice of applying an anticipatory, change-oriented, and self-motivated approach towards industry regulations and compliance standards. The goal of Proactive Compliance is to identify potential problems before they become realities, and to preemptively implement the necessary countermeasures.

For Financial Institutions, practicing Proactive Compliance addresses two areas that can negatively impact operations: increased legislative regulations and staying abreast with rapidly evolving technology.

Following the global economic crash of 2008, reform acts have been passed to better protect consumers. These regulations are continuously evolving and have had a significant impact on Financial Institutions. Most notable is the Dodd-Frank Reform Act (DFA), which tightened the compliance requirements in numerous ways. In addition to stricter regulations, the use of multi-channel technologies (phone, cell, email, text, chat, social media, etc.) are now utilized for financial trading. This adds an extra level of complexity. While these changes give customers more opportunities to connect, they also leave Financial Institutions more vulnerable to fraud, breaches, and liability issues.

There are many benefits to Proactive Compliance:

  • Protect operations from fraud and risk by monitoring interactions across all communication channels
  • See emerging trends, detect potential risk, and flag breaches
  • Manage and reduce financial and legal risks
  • Decrease potential penalties by automating risk analysis, management, and mitigation
  • Improve management visibility
  • Avoid higher costs that result from periods of non-compliance
  • Save time that would otherwise be spent taking corrective measures

In addition, promoting a culture of compliance in your organization improves your brand to potential customers and encourages ethical, forward-thinking, and self-initiated behavior from your employees. It also allows for improved efficiency by empowering compliance officers with fast, powerful tools that can reconstruct trade communications, monitor all channels, create management overviews, spot trends, and analyze emerging risks.

Leading solutions boast the following benefits:

  • Compliance officers and fraud investigators can search large amounts of data by applying contextual cues and smart logic options
  • A single interface is available to search and review interactions from all media types, including voice, text, email, and social media
  • Investigators are able to reconstruct trade communications as they happened, regardless of channel, and correlate the transactions and recordings so they are searchable by trade
  • Trades and interactions are automatically monitored in real time, issuing alerts when non-compliance and fraud risk are detected

As Subject Matter Experts (SMEs), we have a multitude of solutions designed to address the regulatory nuances that affect the Financial Compliance industry. Wilmac’s Consulting Services assess your current status, identify areas of non-compliance and risk, and recommend tools, processes, and best practices to get your organization practicing Proactive Compliance.


Tags: Compliance, Consulting Services, Dodd-Frank Act, Financial Compliance, Proactive Compliance

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