Regulations are in place for businesses all over the world. But many companies remain unprepared for these regulations, or unsure of how to address these requirements.
Compliance responsibilities have increased enormously for organisations in ASEAN and Asia-Pacific over the past few years. In an attempt to improve global financial transparency, many countries have adopted new rules and requirements in this area.
To put the challenge in perspective, an average of 200 regulatory changes a day were recorded around the world in 2016. That is over 70,000 changes that businesses need to account for and this doesn’t include the countless regulations already on the table.
In addition to dealing with regulations from other jurisdictions, such as the US Foreign Account Tax Compliance Act (FATCA) and the European General Data Protection Regulation (GDPR), more APAC countries are also signing up to global initiatives such as the Organisation for Economic Co-operation and Development-led Common Reporting Standard (CRS) and the Base Erosion and Profit Shifting (BEPS) project.
However, while APAC organisations are generally aware of growing regulatory requirements, a survey conducted in October 2018 by Asia Risk in collaboration with TMF Group concluded that many are struggling to keep up with the new rules. Almost 40 per cent of more than 100 respondents to the survey – which polled senior legal and compliance professionals at financial services and other corporates in the APAC region – see changing local and global regulatory requirements as a major challenge. And, while some organisations have already implemented strategies in response – including conducting internal reviews, hiring new staff and outsourcing to experts – a worrying majority have not taken any action in 2018 (57 per cent) and do not currently have any action planned for 2019 (62 per cent).
Organisations in the APAC region must embrace this issue, not least because failure to comply may result in penalties including heavy fines and prison sentences. It may be a tough line to deliver, but it cannot be ignored if companies wish to remain competitive.
A culture of compliance in companies is ideally driven by the board of directors. Benefits to a company include increased revenue, higher productivity, improved safety and quality outcomes, heightened morale, and more satisfied stakeholders in the company. At Marcus Evans’ Boardroom 4.0 event, find out how to drive compliance in a company, together with distinguished speakers from industry leaders and case studies.
Held from 18-20 February 2019 at the Grand Millennium Hotel, Kuala Lumpur, the event features board-level speakers from AmBank Group, Kenanga, Malaysia Airlines, and more. At Boardroom 4.0 the best leaders from Malaysia and worldwide will come together to maximise performance during a time of great change. If you’re a decision maker, leader, a boardroom voice and a custodian of governance, this is the event for you!