Compliance Monitoring and Reporting: A Critical Focus Area for Businesses in Oman
In today’s increasingly complex regulatory landscape, businesses operating in Oman must ensure that their compliance monitoring programmes are effective and provide valuable insights into how they manage compliance risks. The Muscat Securities Market (MSM) requires listed companies to implement a comprehensive compliance monitoring programme, which is not just a box-ticking exercise but a critical aspect of demonstrating regulatory compliance.
The Importance of Compliance Monitoring Programmes
A well-designed compliance monitoring programme should provide comfort to senior management and the board that controls are adequate and effective in managing compliance risks. However, many businesses in Oman struggle to meet the required standards, as highlighted by the 2020 thematic review conducted by the Central Bank of Oman (CBO).
Addressing Weaknesses through Best Practice Initiatives
To address these weaknesses, businesses must implement best practice initiatives that ensure their compliance monitoring programmes are tailored to their specific regulatory requirements and controls. This involves:
- Regular testing and monitoring assessments to identify any gaps or deficiencies
- Timely completion of remedial actions
Unlocking the Benefits of Compliance Monitoring
In addition to meeting regulatory obligations, a well-designed compliance monitoring programme can provide assurance to senior professionals and board members about the adequacy and effectiveness of operations, systems, and controls for monitoring compliance risk.
Key Questions to Answer
To unlock the benefits of compliance monitoring, businesses in Oman must answer four key questions:
- Are you confident about the adequacy and design of your compliance monitoring programme?
- Can you provide sufficient documentary evidence to demonstrate that your programme is fit for purpose and operating effectively?
- Is meeting your compliance monitoring programme tying up too many resources or distracting from other priorities?
- Are the outputs and reporting from your compliance monitoring programme providing sufficient insight and comfort about the findings identified and your systems and controls?
Seeking Support
If businesses in Oman are unable to provide satisfactory answers to these questions, they may need to consider improving their compliance monitoring programmes or seeking third-party support. As the scrutiny on AML/CTF compliance is set to intensify, it is essential that businesses address any weaknesses in their compliance monitoring programmes to avoid potential reputational and financial risks.
Get in Touch
For more information on how to maximise the benefits from your compliance monitoring programme and meet its obligations, please contact [insert company name].