A Chief Compliance Officer (CCO) is a senior-level executive who is responsible for ensuring that an organization complies with all applicable laws, regulations, and industry standards. The CCO’s job function is to develop and implement compliance programs, establish policies and procedures to promote compliance, and monitor the organization’s compliance with those policies and procedures.
Their job responsibilities typically include:
- Developing and implementing compliance programs and policies
- Identifying and assessing compliance risks
- Monitoring and auditing compliance with laws, regulations, and company policies
- Investigating potential compliance violations
- Communicating with regulatory agencies
- Training employees on compliance issues
A CCO generally reports to the organization’s CEO, Board of Directors, or another senior-level executive. They are not required to be licensed, but many organizations require a CCO to hold certifications, such as a Certified Compliance & Ethics Professional (CCEP) or Certified Information Systems Auditor (CISA).
A Money Laundering Reporting Officer (MLRO) is a person responsible for ensuring that their organization complies with anti-money laundering (AML) and countering the financing of terrorism (CFT) laws. MLRO is also ensuring that their organization reporting suspicious activities to authorities in a timely manner.
A CCO may be held responsible for any compliance failures that occur within the organization, and can be held liable for any fines or penalties imposed by regulatory agencies. Some of the ways they can be held liable are not having adequate policies, not providing adequate training to the employees, not monitoring and reporting suspicious activities.
CCOs are often regulated by financial regulators, such as the Securities and Exchange Commission (SEC) in the US, the Financial Conduct Authority (FCA) in the UK, and other similar regulatory bodies in other countries. They are responsible for ensuring compliance with laws and regulations that apply to their organization, and may also be required to file reports with regulatory agencies.
In summary a CCO is responsible for ensuring that an organization is compliant with all applicable laws and regulations, a role that includes developing and implementing compliance programs, monitoring and reporting suspicious activities and handling any incidents or violations. They are often responsible for regulatory compliance and answerable to senior management and board of directors, and could be regulated by financial regulators.
This page was last updated on January 13, 2023.