One of the more difficult issues which fintech companies in Nigeria encounter when launching and running their business is understanding the regulatory landscape in Nigeria. In this short guide we will give you a few tips on how to make sure you are operating in a compliant manner, and how to ensure you are always ahead of the curve when it comes to reacting to regulatory changes.
1. Identifying your Regulator
A lot of fintech solutions have different features that cover different product types. The regulatory landscape is such that each product can be under multiple regulators. Therefore, it is important for Fintechs to ensure they understand who their regulator are – and why they fall under those specific regulators. So that for any move it makes in the market, the Fintech is in total compliance with the law.
2. Identifying and Understanding your Compliance obligations
The world of compliance regulation is complicated and always changing. Fintechs face obligations from a disparate collection of regulatory sources. Fintechs need to avoid missing any legal obligations or deadlines as this could have severe consequences.
Fintechs therefore need to ensure they understand what their obligations are, when they are due, and what information needs to be submitted.
3. Assess your Compliance Level
Auditing for compliance is always the first step in developing a sound compliance strategy. Fintechs need to know where they are with their compliance efforts and how effective their compliance work is.
Assessing compliance status, offers a bird's-eye view of the organization, and this is essential to identify risks and develop a compliance roadmap.
4. Create a robust and effective Compliance Process
Effective compliance is impossible with old practices relying on manual processes, siloed approach to compliance and keeping documentation in physical form. As companies scale, they need effective technology to meet new challenges and streamline their efforts.
Appropriately tailored policies, procedures, and internal controls constitute the first pillar of an effective AML compliance program. When designing their AML compliance program, Fintechs will also need to take into consideration things such as the size of the institution, the products and services offered, and its customer base. A Fintech’s internal AML compliance policies, procedures, and controls should be reflective of its business operations.
5. Make Full Use of Technology
Today, effective compliance is impossible without full application of digital technology. A half-hearted approach of relying on old methods while using random digital tools can only lead to even more confusion, duplicate work and missed deadlines.
Those organizations who are interested in bringing their compliance work to a new level should seriously consider switching to a regulatory compliance platform that supports its operations. By doing so, companies can boost the efficiency of their compliance teams, avoid omissions, cut human error and improve collaboration.
Conclusion and Next Steps
The frequency and sophistication of financial crimes and cyber crimes continue to increase, making Fintechs and other institutions involved in the movement of funds and the processing of personal information particularly vulnerable. Regulatory scrutiny has also intensified. The high stakes and the potential risk of breaches means that compliance must be a top priority.
For more information about how Regfyl can improve your organization's compliance, click here to book a demo and consultation with one of our Regfyl compliance experts.
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