FCA Emphasises on Companies to Invest in Compliance Program

The U.K’s financial crime investigation agency is now taking steps that will involve the companies in taking an active part in the compliance program. They are emphasizing the importance of how companies need to invest in the program that is developed to prevent wrongdoing. 

The Serious Fraud Office is now focusing on the strength of the company’s compliance program. According to SFO Director Lisa Osofsky, the emphasis placed today is a lot stronger than when the company was developed. Ms Osofsky also offered guidance on how compliance programs are evaluated. 

Ms Osofsky asked the compliance practitioners, “Are they part of the company’s DNA? Or do they just adorn a very nice couple of binders that are held on a bookshelf that doesn’t really do much more than provide window-dressing?”

The companies with strong compliance measures can be credited by the agency through lenient settlement negotiations. 

The agency made a deal of $24 million with a subsidiary and a similar settlement was reached with a security service company that paid $48.6 million.

Ms Osofsky talks about one of the companies. “Building on the principles released last year, the company will continue to deepen its understanding of compliance and engagement with compliance professionals. We’re upskilling ourselves to be better and smarter in this evaluation, including bringing in people with experience and expertise in this area.”

Both the cases were in regards to the fraud allegation connected to the electronic-monitoring services to the Ministry of Justice in the U.K. The compliance program by each company played a role in the outcomes. 

The U.K laws state that the arrangements are different from the independent monitors in the U.S that use settlement agreements to ensure compliance.