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Compliance Issues, Fines a Growing Concern in Credit

Compliance 200Fines and sanctions are on the rise for companies in B2B transactions, not just banks, according to the National Association of Credit Management.

Among the fastest growing concerns in business today, domestically and internationally, is that of compliance violations.  This week’s news that Barclays drew two fines – $62 million (USD) by the UK’s Financial Conduct Authority and $15 million by the US Securities and Exchange Commission – for alleged failures to adhere to compliance mandates emphatically drove that point home.

Fines and sanctions are also on the rise for companies involved in B2B transactions. The trend has forced companies, large and small, to reassess whether their compliance policies and procedures, perhaps overlooked in the past, are adequate.  Anecdotally, many in trade credit believe they are not.  Now is the time to “get your house in order,” warned Jimmy Lin, VP of product management and corporate development at The Network, Inc.

Lin agreed with several of the experts in the September/October 2014 Business Credit article “Checking Your Answers?” focusing on the use of compliance-focused metrics that government investigations had become the biggest driver of interest, if not fear. This is even more so for the increasing numbers of companies and their credit and collections staff involved in international transactions.

Courtesy Brian Shappell, CBA, CICP, NACM staff writer

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