While some compliance regulations are broadly similar, businesses must also be aware of where standards diverge, so as not to run afoul of non-compliance. Failing to comply with regulatory standards carries several risks, fines, loss of business and reputational damage.
What is Global Compliance?
Simply put, global compliance is the practice of ensuring that a business that operates in multiple jurisdictions meets all its compliance obligations.
Although there are some differences in regulations between jurisdictions, a lot of the key factors of compliance are universal. No matter where they operate, businesses must ensure they comply with standards on anti-money laundering and anti-slavery laws, among various others.
Three benefits of global compliance
- Avoid large fines and unnecessary penalties
As regulations surrounding global compliance become more stringent, the punishment for failing to meet these standards gets progressively heavier. Instagram recently provided a case study on the severity of fines that can be awarded for breaching rules surrounding the European Union General Data Protecting Regulation, or GDPR.[1] The social media company was fined 405 million euros after it was decided that the company mishandled the personal data of the site’s users.
In the case of the GDPR, it is important to remember that the regulations apply to any business that operates within the EU – regardless of whether they are physically based in the EU itself.
- Avoid loss of business
The financial implications of failing to ensure global compliance does not end with heavy fines. The financial losses can get far worse. Failing to meet global compliance requirements can result in a business being in breach of any professional contracts that it may be involved in.
Very often, being in breach of a contract can result in the contract in question being terminated. Worse, the party that adhered to compliance regulations may seek damages to cover its loss of revenue. Even if further financial losses do not occur, the company that failed to ensure global compliance has still lost a very significant amount of money.
- Avoid reputational damage
As bad as financial losses are, there is always the possibility that a firm will be able to recoup these losses. However, this is very much not the case when it comes to reputation. If a company is found to have not complied with operating regulations where it does business, this can lead to the company’s name being tarnished. Often when this happens, it is extremely difficult for a company’s standing to reach such levels again in the industry.
How can we assist you?
As we’ve covered in previous articles, there are numerous issues with dealing with compliance internally. Two of the major issues when dealing with compliance internally are that it is incredibly expensive, as well as time-consuming. These issues only increase in scale when it comes to firms that must contend with regulations in multiple jurisdictions.
With this being the case, the best solution for businesses to ensure they are compliant with regulations is to utilise global compliance management services. However, with your money, reputation, and future success at stake, it is vital to choose the right company.
This is where Apex Group comes in. Our wide range of products ensures that we can offer a tailored Global Compliance service that fits your precise requirements - no matter what your needs are. We’ll take care of everything, from legal obligations to payroll support and everything in between.
