Analyzing AML Audits

Compliance Commandments

In an April 2004 speech before the Financial Markets Association 2004 Securities Compliance Seminar, the SEC outlined pointers for preparing for compliance audits. According to Mary Ann Gadziala, the associate director of the Office of Compliance Inspections and Examinations at the SEC, a comprehensive compliance exam includes inspection of:

1. Compliance culture, and board and top management involvement in compliance.

2. Structure, functions and coverage of the compliance program.

3. Supervisory structure and written supervisory procedures.

4. Employee supervision.

5. Firm oversight of compliance risks.

Source: SEC

2 of 2