Compliance outsourcing & in-house Compliance Officer

For many firms this is a cost-effective proposition compared to hiring an internal resource but is not always the best option for some firms.

Is compliance outsourcing right for your firm?

Unlike many jurisdictions, the Financial Free Zones of the Abu Dhabi Global Market (“ADGM”) and the Dubai International Financial Centre (“DIFC”) allow firms to employ an outsourced individual as a Compliance Officer (“CO”)/Money Laundering Reporting Officer (“MLRO”).

For many firms this is a cost-effective proposition compared to hiring an internal resource but is not always the best option for some firms.

There is no ‘one-size-fits-all’ solution when it comes to compliance arrangements. By considering the pros and cons, this will allow you to identify what is right for your business.

To assist senior management with the process of identifying the right option, we have summarised the key areas for consideration. Download our full comparison to help you decide what type of support is required.

    we have summarised the key areas for consideration. Download our full comparison to help you decide what type of support is required.

    Outsourcing

    In-house

    Recruitment

    No recruitment fees. Immediate start. Selection of experienced consultants.

    Takes time to identify the right candidate. Notice period before starting.

    Cost

    Retainer basis, costs increase as business increases. Best suited to:
    • small to medium sized firms
    • reasonable size client base.

    Salary plus end of service, DEWS (DIFC only), medical insurance, visa costs. Best suited to:

    • larger firms (number of transactions and employees)
    • high client volumes with retail endorsement.a

    Type of Business

    Non-high-risk businesses.

    High-risk businesses.

    Regulatory Connections

    Greater exposure to the regulator.

    Limited exposure to the regulator.

    Knowledge, Experience and Expertise

    Access to a team of compliance consultants. Wide range and depth of experience of the role and the local regulatory environments. Regular training and development. Market overview of best practice.

    In-depth knowledge of your business. Ongoing training and development must be provided.

    Compliance Cover

    A compliance resource will always be available. When your CO/MLRO is on leave there will be another consultant assigned to cover.

    Small teams can lead to absence of adequate compliance coverage. Succession planning and temporary cover arrangements required to be in place.

    The full comparison includes regulatory awareness, corporate culture, benchmarking against best practice, independence, accountability and accessibility.

    Is compliance outsourcing the right option for your firm?

    Details of the key considerations for senior management when deciding what compliance arrangements are most suitable.

    Download In PDF

    You may have reviewed this list and decided on a clear path. It may be that compliance/MLRO outsourcing does seem like a good option or you could be clear that you do need an internal resource. You may still be unsure which is the best option, or you may be simply looking at how you can support your internal resource without the need to increase the size of the team. There is still a middle ground to consider – compliance support.

    Contact us to discuss your compliance arrangements and how we can support you, whether that is full Compliance Officer and MLRO outsourcing or a support arrangement to provide local cover for your central compliance function.

    Company Registration and Licensing
    To ensure a smooth application process, we advise and guide our clients on the respective licensing requirements.
    Global Compliance Programmes and Support
    We ensure our clients have the correct documents at all times in order to facilitate compliance with the various applicable laws, regulations and standards.
    Global Compliance Advisory
    We assist organisations to develop controls that meet their regulatory requirements and to operate successfully within demanding regulatory regimes.
    Global Compliance Risk Management
    We help organisations to identify, build and streamline the necessary internal controls in order to implement risk management strategies.
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    We offer our clients the strongest independent information security and data protection services globally. All our services are tailored to meet the specific needs of our clients, taking into account each client’s unique requirements, risk appetite and culture.
    Compliance Outsourcing
    Whatever the size of your organisation, our team is here to help you review your needs and provide the outsourcing solution relevant to your requirements.
    Regulatory Compliance Training
    Our training courses can be customised to meet your needs and ensure that your staff remain up to date with the latest requirements.

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