Regulatory Compliance – Why do you need to comply?

5 December 2017

Regulatory Compliance Article - Consulco

In an ever-changing international political and financial environment, businesses and investors seek for stability, safe-harbours, sustainable investment opportunities, profitability.   One may observe capital shifted in or out of particular markets and products, business diverted in or out of different industry segments, people moving in or out of various areas and jurisdictions.

At the same time, the world is experiencing a justified ongoing growth of regulatory frameworks connected with anti-money laundering, anti-terrorism financing, tax evasion and other illegal activities.  These have given rise to laws and regulations for protecting the integrity of markets, financial environments and public funds, and for combating and assisting in preventing financial and related abuses.

Compliance of regulated institutions like banks, investment firms, fiduciary firms, professional service providers and others, with the relevant requirements is a vital focus area, since such institutions need to ensure that they have adopted, implemented and follow appropriate procedures to adhere to the increasing regulatory demands both inside and with respect to their clients. It is worth mentioning that the regulators are expecting compliance screening to help these institutions identify a range of potential financial crimes as the regulators themselves are not alleging money laundering but are assessing the suitability and effectiveness of the procedures and controls set and followed by the relevant institutions.

Changing environment makes it increasingly necessary for the industry to collaborate on this costly area of regulation. Thus, the aforementioned regulatory requirements have shaped a significant burden on businesses and investors, which for regulated institutions goes far beyond the basic know-your-client function.  Businesses and investors are required, among others, to undergo extensive review and evidencing of:

  • the sources of accumulation of their wealth
  • ongoing monitoring and justification of particular funds received/paid during the course of their business activities and used in the business relations (including transactional compliance)
  • adherence to overall tax compliance, etc. 

Failure to comply or to confirm the compliance with any of these requirements may have various repercussions for a business or an investor; some simple examples include:

  • Inability to open bank accounts
  • Blocking of funds in bank accounts and inability to execute transactions
  • Inability to be accepted as clients of an investment or brokerage firm
  • Discontinuation of services provided by a legal firm
  • Financial loss in form of unlimited penalty or eviction of assets
  • Reputational compromise

The above highlights the importance of the necessity for businesses and investors to maintain a comprehensive and updated economic profile to be prepared for the prescribed screening by the appointed financial institutions within shortest deadlines.

Being one of such appointed institutions we have an extensive experience and understanding of the applied regulations and would be pleased to share our knowledge. Therefore, we are able to advice and support you in managing the above mentioned regulatory risks affecting you or your business.  Our services include:

  • Advice on potential actions that need to be taken in connection with complying with specific regulatory requirements
  • Carrying out a due-diligence review of the sources of wealth accumulation
  • Monitoring and documenting the funds paid and received by your business on an ongoing basis or with regards to isolated transactions
  • Assistance in preparing documentation required by financial institutions for specific purposes e.g. for opening bank accounts
  • Building and maintain a comprehensive economic profile for you or your business
  • Introducer’s services with regards to specific transactions e.g. investment of funds via a brokerage house


If you wish to receive more information or would like to speak to one of our outsourced bookkeeping, payroll and vat services experts, then please contact us at


Consulco is an independent trust services and investment management group operating since 1993 and managed by Marios Hajiroussos, Dmitry Khenkin and Elena Hajiroussou. 

© Consulco Limited 2017. All rights reserved.No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of Consulco Limited. The information provided in this publication does not constitute legal, tax or investment advice and no responsibility is accepted for any loss occasioned directly or indirectly as a result of persons acting, or refraining from acting, wholly or partially in reliance upon it.