Regulators in East Africa Demand Evidence of Effective Compliance Programs
Regulators in the financial services sector in East Africa are increasingly demanding that companies provide evidence of their compliance programs and regular independent reviews. This shift is evident in a recent survey by PwC, which highlights the importance of demonstrating the effectiveness of compliance programs.
Risk-Based Approach to Compliance
According to PwC’s survey, regulators recognize that compliance programs should be risk-based and tailored to an organization’s specific needs. No longer is a one-size-fits-all approach sufficient. Both large and small organizations must demonstrate that their programs are effective in addressing the risks they face.
The East African Region: A Hotbed of Regulatory Scrutiny
The East African region has seen a significant uptick in regulatory scrutiny, with regulators demanding more robust evidence of companies’ compliance programs. In response, PwC is urging companies to prioritize demonstrating the effectiveness of their compliance programs.
“A cookie-cutter approach to compliance no longer suffices,” said Uthman Mayanja, Partner at PwC. “Companies must have a defensible measurement in place to demonstrate that their program has been tested and can prevent or detect problematic misconduct in the future.”
The Importance of Regular Independent Reviews
PwC’s Global Economic Crime and Fraud Survey 2020 emphasizes the importance of regular independent reviews and evidence-based compliance programs. The survey found that fraud is a risk to which no business is immune, and companies must continually assess and refine their anti-fraud defenses.
PwC’s Offerings: Helping Companies Prepare for Regulatory Scrutiny
To help companies prepare for regulatory scrutiny, PwC offers:
- Fraud risk assessments
- Cyber security assessments
- Investigation services to detect economic crime
- Expert guidance on response mechanisms and systems
Conclusion
In today’s complex regulatory environment, it is essential for companies to prioritize demonstrating the effectiveness of their compliance programs. By having a defensible measurement in place, organizations can demonstrate that their program has been tested and can prevent or detect problematic misconduct in the future.
About the Author
Uthman Mayanja is a Partner at PwC with extensive experience in forensic services and investigations. He can be reached at uthman.mayanja@pwc.com or +256 (0) 312 354400.
About PwC
PwC is a network of firms in 158 countries with more than 236,000 people who are committed to delivering quality in assurance, advisory and tax services. For more information, visit www.pwc.com.