Assurance Reviews

Reviews carried out by an independent third party can be a value-adding activity for all regulated companies

Indeed, reviews carried out by independent third parties can be a valuable activity for regulated companies in the Dubai International Financial Centre (DIFC) and the Abu Dhabi Global Market (ADGM) and are often referred to as “assurance reviews.” These reviews serve several important purposes and benefits for regulated entities operating in these financial free zones:

How can Compliance World help?

We can review your existing compliance arrangements, including policies, procedures, resourcing and reporting, to assess how well they meet your business requirements and to ensure they keep pace with the ever-evolving regulatory expectations and interpretations. We can conduct full compliance reviews or specific examinations of just one area. Areas where you may wish to consider an independent review by an objective external expert can include the following:

Client onboarding  

 ensure your clients have been onboarded in line with relevant AML and conduct requirements and where any gaps are identified, recommendations to improve or remediate

AML framework 

attain an independent view on the adequacy and effectiveness of your AML, CTF and Sanctions framework

Conduct risk 

review your business model and the inherent conduct risks to ensure that you are in control of this relatively new risk class

Compliance framework 

attain an independent view on the adequacy and effectiveness of your compliance framework, including strategy, allocation of resources, reporting lines, independence between first and second line, management information, and preparedness for regulatory change

Regulatory visits 

prepare for regulatory visits, thematic reviews and other regulatory interactions

Compliance monitoring 

outsource your second line compliance assurance activity to us to receive expert, value-added assurance on your compliance framework and performance against internal procedures and regulatory inspections

Data protection 

review your data protection framework and obtain advice on data security

Benchmarking 

benefit from our extensive knowledge of current best practice and our unparalleled view of peer group practices.

It’s important to note that assurance reviews should be conducted by experienced and qualified professionals who understand the specific regulatory environment of the DIFC and ADGM. Additionally, the frequency and scope of these reviews may vary depending on the size, complexity, and nature of the business.

In summary, assurance reviews carried out by independent third parties are a valuable tool for regulated companies in the DIFC and ADGM. They not only help ensure compliance with regulations but also contribute to operational efficiency, risk management, and overall business sustainability.

Compliance Validation:

Assurance reviews help verify that a company is in compliance with the regulatory requirements and standards set by the respective financial authorities in the DIFC and ADGM. This is crucial for maintaining good standing and avoiding regulatory penalties.

Risk Mitigation:

Independent reviews can identify areas where a company may be exposed to compliance or operational risks. This enables companies to take proactive measures to mitigate these risks before they escalate.

Operational Efficiency:

Assurance reviews can highlight operational inefficiencies or areas where processes can be streamlined. Improving operational efficiency can lead to cost savings and better resource allocation.

Enhanced Reputation:

Demonstrating a commitment to compliance and a willingness to undergo independent reviews can enhance a company’s reputation within the financial community. It can also help attract investors and clients who value regulatory adherence and transparency.

Identification of Best Practices:

Third-party reviewers often bring industry best practices and insights to the table. Companies can learn from these practices and implement improvements in their operations.

Preparation for Regulatory Changes:

Regulatory requirements can change over time. Assurance reviews can help companies stay ahead of these changes, ensuring they remain compliant with evolving regulations.

Investor and Stakeholder Confidence:

External reviews can provide confidence to investors, shareholders, and stakeholders that the company is well-managed and adheres to regulatory standards. This can be particularly important for companies seeking capital investment or partnerships.

Internal Controls and Governance:

Assurance reviews can assess a company’s internal controls and governance structures, ensuring that these are effective in managing risks and complying with regulations.

Customization:

Assurance reviews can be tailored to address specific areas of concern or risks that are relevant to the particular business operations of the company.

Reporting and Documentation:

Independent reviews typically result in comprehensive reports detailing findings, recommendations, and areas of improvement. These reports can be valuable for internal decision-making, regulatory reporting, and communication with stakeholders.