Compliance audit

An audit is much more than just a few checks in a box. It is a detailed examination of the effectiveness of your company’s processes, systems, or risks, followed by an assessment of how you could improve. The audit process gives independent assurance to a firm’s board on how well the compliance function is performing.

An independent internal audit can be carried out by your firm in-house if your organisation is large enough – for most firms it is more practical and cost effective to use a specialist compliance consultancy which is both independent and brings its own compliance expertise.

Our compliance auditors all have at least 12 to 15 years’ experience in compliance and hold industry standard qualifications. Their professional experience and domain expertise will help your firm to spot any issues at the earliest possible stage. We can also help with any remediation you may need.

Anti-Money laundering (AML) Audit

As a regulated firm, you’ll need an independent audit of your anti-money laundering processes every year to make sure you’re complying with the Money Laundering Regulations 2017 (amended 2019), the Joint Money Laundering Steering Group (JMLSG) guidance, and the Proceeds of Crime Act 2002. This means bringing in an external reviewer to assess your AML procedures, documents, controls and personnel.

Safeguarding Audit

As an authorised payment institution (API) or e-money institution you are required to safeguard client funds. The FCA’s guidance requires that firms who need to have their annual accounts audited also conduct an annual review of their compliance with the safeguarding requirements. This could be done by a firm’s statutory auditor or by a suitably-qualified specialist consultancy.

IT Audit

As an authorised payment institution (API) or e-money institution you are required to safeguard client funds. The FCA’s guidance requires that firms who need to have their annual accounts audited also conduct an annual review of their compliance with the safeguarding requirements. This could be done by a firm’s statutory auditor or by a suitably-qualified specialist consultancy.

Regulatory Audit

The Payment Services Regulations 2017 (PSD2), as well as the associated guidance from the FCA, EBA and so on, impose many requirements on firms regulated under them. This includes key areas like conduct of business, complaints handling, compliance with capital adequacy/own funds requirements, and client funds safeguarding.

How an audit adds value

An audit gives a firm the opportunity to step back and take an independent look at the effectiveness of its compliance function.

Failure of your compliance function can result in fines, loss of bank accounts, loss of reputation, criminal sanctions, and loss of your licence. It is an existential threat to your business.

When you use a highly-experienced compliance consultant to conduct a review, your firm can identify blind spots, areas of weakness and emergent threats, and also learn from the professional experience of the auditor.