Compliance Program Development & Implementation Flashcards

Which standard provides an internationally recognized framework specifically for compliance management systems?

Answer: ISO 37301 (Compliance Management Systems)

ISO 37301 is the dedicated international standard for compliance management systems, replacing the earlier ISO 19600 guideline with a certifiable standard.

A compliance officer is building a policy review schedule. What is the MOST important trigger for an unscheduled policy review?

Answer: A significant change in applicable law or regulation

Regulatory or legal changes that affect the subject matter of a policy require immediate review to ensure continued compliance, regardless of the scheduled review cycle.

In designing internal controls for anti-money laundering (AML), which control type addresses risk BEFORE a transaction occurs?

Answer: Preventive control

Preventive controls are designed to stop non-compliant activity before it happens, such as customer due diligence checks before account opening.

When a compliance program is first being established in a newly regulated industry, which step should come FIRST?

Answer: Conducting a regulatory inventory and applicability assessment

Before any other action, the organization must identify which laws and regulations apply to its operations—this regulatory inventory drives all subsequent program design decisions.

Which practice helps ensure that compliance policies remain 'living documents' rather than static artifacts?

Answer: Establishing defined review cycles with assigned owners and version control

Defined review cycles, clear ownership, and version control create an ongoing governance process that keeps policies current and accountable.

A company's compliance monitoring program identifies a control failure in its export controls process. What is the CORRECT sequence of actions?

Answer: Assess impact and potential violation, remediate, document, and report to authorities if required

Proper handling requires first assessing the scope and potential regulatory violation, then remediating, documenting thoroughly, and making mandatory disclosures if the assessment warrants.

Which element of a compliance program is specifically designed to detect misconduct that has already occurred?

Answer: Ongoing monitoring and auditing activities

Monitoring and auditing activities review past transactions and behaviors to detect violations that have already taken place, enabling timely response and correction.