Regulators in East Africa Demand Evidence of Compliance Program Effectiveness
In the financial services sector of East Africa, regulators are increasingly demanding that companies provide evidence of their compliance programs’ effectiveness and regular independent reviews. This shift reflects a growing recognition that no compliance program is foolproof, and regulators need to see tangible proof that organizations are taking effective steps to prevent and detect improper activity.
Understanding the Need for Evidence
According to PwC’s Global Economic Crime and Fraud Survey, many regulators understand that compliance programs should be risk-based and tailored to the specific needs of each organization. A one-size-fits-all approach is not sufficient, as different companies face unique risks and challenges.
Challenges in Providing Evidence
- Some initiatives, such as training or third-party management programs, may not be easy to quantify.
- Regulators may require more robust metrics to measure the success of these programs.
- Companies must have a defensible measurement in place that demonstrates the effectiveness of their compliance program.
Addressing the Challenge
To address this challenge, companies must:
- Have regular monitoring and testing in place
- Conduct independent reviews and audits
- Develop defensible measurements to demonstrate the success of their compliance programs
Conclusion
The trend towards requiring evidence of compliance program effectiveness is likely to continue in East Africa and beyond. Companies must be proactive in developing and implementing effective compliance programs, and regulators must be prepared to provide guidance on how to demonstrate their success.
PwC’s Expertise
At PwC, our team of experts can help organizations assess their fraud risk and develop effective compliance programs. Our range of services includes:
- Fraud risk assessments
- Cyber security assessments
- Investigation services
Contact us today to learn more about how we can support your organization.
Author Bio
Uthman Mayanja is a Partner at PwC with extensive experience in forensic services and investigations. Muniu Thoithi is the Advisory & Forensics Leader for Eastern Africa, while Doreen Mugisha is a Manager, Clients and Markets Development. John Kamau and Samuel Marete are Associate Directors and Managers respectively, specializing in forensic services.
About PwC
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