With the drive for accountability and transparency now a worldwide movement, we decided to use this space to examine the traits organizations that have mastered compliance demonstrate. Below is the second in our three-part series on the three qualities best-in-class compliance operations demonstrate. If you missed last week’s edition, you can access it here.

As always, please feel free to give us your opinion on what you’ve read.

Another quality a best-in-class compliance operation displays is the clear delineation between compliance responsibilities for each member of the organization with as little overlap as possible.

For example, best-in-class financial institutions take a “triage approach” to managing unusual data they receive about an account. First, there is a junior resource person who reviews customer transaction data and decides about sending it to a more senior arbiter for an immediate, and more detailed, review. Their roles are separate and each has different responsibilities.

Everyday, financial institutions with a good command of their compliance operations address such matters through their division of labor. If an institution receives data indicating an AML issue, the information is sent to one person for further review. A fraud matter, on the other hand, is handled by a different person in the organization.

Under this model, each person is responsible for a specific function and all these people executing their responsibilities collectively enable the organization to meet its compliance responsibilities.

Furthermore, with such set functions everyone in the organization can acquire a clear understanding of their roles and how what they do fits into the overall operational picture. Such divisions also make it easier for management to determine where problems are occurring, should issues arise.

Such clarity is just another step an organization can take to ensure its compliance operation is managed in a straightforward and effective manner.

Next Week: Why an organization’s information technology department should be integral to its compliance group