A great compliance program is non-negotiable. But it’s not just about ticking boxes—this is your business’s protection against financial crime, and instances of non-compliance. Here are the five key components every business in Canada needs to ace compliance like a pro.

1. Appoint a Compliance Officer—Your Compliance MVP

Every winning team needs a captain, and your compliance program is no different. This is where your Compliance Officer comes in. This person is more than just a captain—they’re the leader running the show, enforcing the rules, and making sure your business stays squeaky clean.

Give your Compliance Officer the authority to make decisions and the resources to do their job right. Without them, your compliance program is simply preformative.

2. Written Policies and Procedures—Your Compliance Playbook

You can’t enforce the rules if you don’t know them. Your written policies are the official playbook for how your business stays compliant. Don’t just write them once and forget about them—these policies need to be updated on a routine basis as your business expands and new risks present themselves.

Your policies should be clear, detailed, and easy for everyone to follow. Bonus points if you have a process flow or a compliance guide to make it even easier.

3. Risk Assessment—Know Your Weak Spots

You can’t manage what you don’t know, right? That’s why conducting a thorough risk assessment is critical to your compliance program. Take a look at your business activities, relationships, and even where you operate. How do each of these things present new risks?

Once you fully understand your risks, adjust your policies accordingly. This way, you’re routinely protecting your business from surprises.

4. Compliance Training—Get the Team On-Board

Policies? Risk assessment? Now it is time to work on your team's knowledge. Compliance training isn’t a “set it and forget it” situation. Your employees must stay up to date with the latest regulations and requirements. Which means ongoing training is a must.

Tailor the training to different skill sets and positions in the company and keep it exciting. The more they know, the better they are prepared. Knowledge is power when it comes to combating money laundering and terrorist financing.

5. Effectiveness Review—Put Your Program to the Test

You’ve set up your policies, trained your people, and assessed your risks. But how do you know if it’s actually working? Time for an effectiveness review!

Every two years (at least), take a deep dive into your compliance program. Check if everything’s holding up—your policies, risk assessment, training program—everything. If you find any gaps, patch them up now before they become bigger issues.

Final Thoughts

A great compliance program is more than just avoiding fines and blindly following rules. It’s about setting your business up for long-term success and remaining active and competitive, while protecting yourself from instances that can slow your business down.

Nail these five components, and your business will be in top compliance shape. Miss them, and, well… let’s just say you don’t want to find out what happens next. How solid is your compliance program? Time to find out.

Feeling like your compliance program could use a little tune-up? Let’s chat! We’re here to help you take it from “good enough” to rock-solid.