The accounting industry is under pressure, in part because of laws and regulations, which are constantly changing. So how do you ensure you are compliant and avoid reputational damage as an accountant?
What is compliance?
Although the term compliance is bandied around in the financial world, it is only now clear to some what it means. Therefore, we start with a definition of the term:
Compliance is compliance with current, relevant laws, regulations, and ethical requirements. Not only the management of the organization but especially the government and regulators keep a close eye on financial service providers.
What is the point of compliance?
It’s a challenge for accountancy. First, it’s crucial to comply with the rules to avoid harm. Also, the industry is based on trust, so if you’re not doing it yourself, it’s to keep your client.
If you comply with all laws and regulations, you prevent severe issues such as money laundering, terrorist financing, and the unintentional leakage of confidential client information. You also ensure you limit your risks because you don’t want to work with clients who could harm your business.
Legislation that comes into play here includes the Prevention of Money Laundering and Financing of Terrorism Act (AML), the Financial Supervision Act (Wft), the General Data Protection Regulation (GDPR), and the Audit Firms Supervision Act (WTA). As a firm, you also want to consider ethical requirements, including Know-Your-Customer (KYC), for a smooth screening process during onboarding.
One-stop shop for the Dutch accountant
Despite the complexity of the challenges and the development speed of the industry, it is still possible to address compliance efficiently within your organization. Whether large or small, you want to focus your precious time on the customer. By deploying an AI-driven tool, you will always work according to the latest laws and regulations and avoid penalties from regulators.
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