Shortly assist with the questions on third column below by suggesting monitoring method for each regulatory provision. There are 6 questions to be answered for each regulatory provision.

COMPLIANCE RISK MANAGEMENT AND MONITORING PLAN	QUESTIONS:
REGULATORY PROVISION:	CONTROLS IN PLACE:	Suggest monitoring method
FAIS Act, 2002, Section 8(1) An application for an authorisation referred to in section 7(1). including an application by an applicant not domiciled in the Republic, must be submitted to the registrar in the form and manner determined by the registrar by notice in the Gazette, and be accompanied by information to satisfy the registrar that the applicant complies with the requirements for fit and proper financial services providers or categories of providers. determined by the registrar by notice in the Gazette, after consultation with 10 the Advisory Committee, in respect of - (a) personal character qualities of honesty and integrity; (b) the competence and operational ability of the applicant to fulfil the responsibilities imposed by this Act; and (c) the applicant's financial soundness: Provided that where the applicant is a partnership. a trust or a corporate or unincorporated body, the applicant must, in addition, so satisfy the registrar that any key individual in respect of the applicant complies with the said requirements in respect of- (i) personal character qualities of honesty and integrity; and (ii) competence and operational ability, to the extent required in order for such key individual to fulfil the responsibilities imposed on the key individual by this Act.	Giving incorrect or misleading information: Having a rigorous due diligence procedure in place is one of the controls that can be put in place to limit the risk of supplying incorrect or misleading information. Other controls may be put in place as well. Verifying that the information that was submitted to the registrar was accurate need to be a part of this procedure. Moreover, the establishment must make certain that it satisfies all licensing criteria as well as all standards for its fitness and propriety as outlined by the FSCA. Non-compliance with fit and suitable requirements: Another control that may be put in place to limit the risk of non-compliance with fit and appropriate criteria is to ensure that the institution's representatives fulfil the relevant credentials and training requirements. For the organization to guarantee that its representatives are in accordance with the FAIS Act, it should also adopt a code of conduct as well as internal rules and procedures. These should include the qualifications, training, and duties of representatives. Non-compliance by important individuals: To reduce the likelihood that important personnel may fail to comply with regulations, the organization should make certain that it has suitable mechanisms in place to monitor the performance of its representatives and guarantee that they are complying with regulations. The organization should also make certain that its representatives are aware of the duties to which they are held and that they agree with the standards for fitness and propriety that have been established by the FSCA.	Question 1: Please suggest a process/method for monitoring?
FAIS Act, 2002, Section 13 (2) (2) An authorised financial services provider must- (a) at all times be satisfied that the provider's representatives, and key individuals of such representatives, are, when rendering a financial service on behalf of the provider, competent to act, taking into consideration requirements similar to those contemplated in paragraphs (a) and (b) of section 8( 1 ) and subsection 15 (1 )(b)(ii) of this section, where applicable; and (b) take such steps as may be reasonable in the circumstances to ensure that representatives comply with any applicable code of conduct as well as with other applicable laws on conduct of business.	Representatives who are not qualified: One of the controls that may be put in place to help limit the risk that untrained representatives would provide financial services on behalf of the provider is to make sure that the representatives have received the appropriate training and are qualified to do so. In addition to this, the organization must make sure that it is in agreement with all of the regulations that have been issued by the Financial Services Conduct Authority (FSCA). Failure to comply with standards pertaining to competencies: Another control that can be put in place to mitigate the risk of failing to comply with competency requirements is making sure that the representatives of the institution meet the necessary qualifications and training requirements. This control can be put in place to ensure that the representatives of the institution are competent. For the organization to guarantee that its representatives are in accordance with the FAIS Act, it should also adopt a code of conduct as well as internal rules and procedures. These should include the qualifications, training, and duties of representatives. Failing to guarantee conformity with code of conduct: The institution must make certain that its representatives are aware of the code of conduct and that they are behaving in a manner that is consistent with it in order to reduce the possibility of it failing to guarantee that the code of conduct is followed. In addition to this, the organization must devise a method to record, analyse, and evaluate the performance of its representatives, as well as to check that they are abiding by the code of conduct.	Question 2: Please suggest a process for monitoring here?
FAIS Act, 2002, Section 19(2)(a) (2) (a) An authorised financial services provider must cause the statements referred to in subsection (l)(b) to be audited and reported on by an external auditor approved by the registrar, in order to produce- (i) an audited balance sheet, including such notes thereon or documents attached (ii) an audited income statement, including such notes thereon or documents attached thereto as may be necessary; and (iii) an audited statement of the source and application of funds.	Failure to get financial statements audited: One of the measures that can be put in place to reduce the risk of failing to have financial statements audited is making sure that the institution uses an external auditor that has been authorized by the registrar. This is one of the controls that can be put in place to mitigate the risk. In addition to this, the organization has to make sure that it is in agreement with all of the regulations that have been issued by the Financial Services Conduct Authority (FSCA). Use of an External Auditor That Has Not Been Approved: Another control that may be put in place to limit the risk of hiring an external auditor who is not authorized is making sure that the institution uses an external auditor who has been approved by the registrar. Also, the organization must devise a method to monitor and keep tabs on the work done by the external auditor, as well as check to see whether they are adhering to the standards established by the FSCA. Insufficient audit report: To reduce the likelihood of producing an unsatisfactory audit report, the organization must make certain that the external auditor is well-versed in all of the regulations that have been outlined by the FSCA. Moreover, the organization is responsible for ensuring that the audit report includes the audited balance sheet, income statement, and explanation of the source and use of funds, as well as any appropriate comments or documents.
Financial Intelligence Centre Act, 2001, Section 20A An accountable institution may not establish a business relationship or conclude a single transaction with an anonymous client or a client with an apparent false or fictitious name.	Failure to detect customers who use fraudulent or fictitious identities or offer deceptive information: Having a robust due diligence procedure in place is one of the controls that can be put in place to minimize the risk of failing to identify customers who use fake or fictitious names or offer information that is deceptive. This control may help reduce the risk of failing to identify clients. Verifying that the information that was supplied to the institution is accurate need to be included in this procedure. The institution should also develop policies and processes to guarantee they are in conformity with the FICA. The failure to develop proper processes to prevent unknown customers from forming commercial ties or carrying out transactions: Another control that can be put in place to mitigate the risk of failing to implement adequate procedures to prevent anonymous clients from establishing business relationships or conducting transactions is to ensure that the institution has appropriate policies and procedures in place to identify and verify the identity of clients. This can be done by ensuring that the institution has appropriate policies and procedures in place to prevent anonymous clients from establishing business relationships or conducting transactions. The institution should also verify that they are following rules laid forth by the Financial Services Conduct Authority (FSCA) (FSCA). Establishing a commercial contact or finishing a transaction with an unidentified customer or a customer using a name that seems to be fabricated or fraudulent, either knowingly or wilfully, is considered fraud. The organization needs to make sure that they have appropriate systems in place to monitor the activities of their clients in order to reduce the risk of knowingly or intentionally establishing a business relationship or concluding a transaction with an anonymous client or a client with an apparent false or fictitious name. This can be avoided by ensuring that they have the appropriate systems in place. In addition to this, the institution needs to make certain that its representatives are aware of the duties to which they are held and that they are acting in accordance with the FICA.	Question 3: Please suggest a process for monitoring here?
Financial Intelligence Centre Act, 2001, Section 22 (1)(2) (1) When an accountable institution is required to obtain information pertaining to a client or prospective client pursuant to sections 21 to 21H the institution must keep a record of that information. (2) Without limiting subsection (1), the records must (a) include copies of, or references to, information provided to or obtained by the accountable institution to verify a person's identity; and (b) in the case of a business relationship, reflect the information obtained by the accountable institution under section 21A concerning (i) the nature of the business relationship; (ii) the intended purpose of the business relationship; and (iii) the source of the funds which the prospective client is expected to use in concluding transactions in the course of the business relationship.	The failure to build a compliance function may be summarized as follows: One of the measures that may be put in place to limit the risk of failing to make a compliance function is to ensure that the institution has an adequate system in place to monitor their compliance with the requirements of the Act and their Risk Management and Compliance Program. The institution should also verify that they are following rules laid forth by the Financial Services Conduct Authority (FSCA). Insufficient compliance function: Another control that can be put in place to mitigate the risk of an inadequate compliance function is to make sure that the institution has assigned a person with sufficient experience and seniority to ensure that the compliance function is carried out effectively. This is another control that can be put in place to mitigate the risk of an inadequate compliance function. It is also the responsibility of the organization to guarantee that they agree with all the FSCA's regulations and standards. Failing to guarantee conformity by employees: To limit the risk of failure to guarantee compliance by workers, the institution should ensure that personnel are sufficiently taught on the relevant sections of the Act and their Risk Management and Compliance Program. It is also the responsibility of the organization to guarantee that they agree with all the FSCA's regulations and standards. Insufficient Risk Management and Compliance Program\s: To reduce the risk of an inadequate Risk Management and Compliance Program, the institution should ensure that the program is constantly evaluated and updated to ensure that it is effective and consistent with the terms of the Act. It is also the responsibility of the organization to guarantee that they agree with all the FSCA's regulations and standards.	Question 4: Please suggest a process for monitoring here?
Financial Intelligence Centre Act, 2001, Section 24 (1) The duties imposed by sections 22 and 22A on an accountable institution to keep a record of the matters specified in those sections may be performed by a third party on behalf of the accountable institution as long as the accountable institution has free and easy access to the records and the records are readily available to the Centre and the relevant supervisory body for the purposes of performing its functions in terms of this Act.	Lack of Sufficient Access to Records: The institution needs to guarantee that they have unfettered and uncomplicated access to the data maintained by a third party, or that the documents are easily accessible to both the Centre and the necessary supervisory body. Because of this, the liable institution won't have to worry about incurring any fines for failing to comply with the regulations since they can't get their hands on the documents. It is recommended that the responsible institution investigate the possibility of establishing a secure network with the third party to simplify the accessing and sharing of records to guarantee sufficient record access. They must also think about establishing a separate group that will be responsible for managing the records and ensuring that they are maintained up to date. Inability to Guarantee Compliance on the Part of Third Parties: The institution needs to ascertain whether the third party to whom they delegate the task of record keeping complies with the requirements outlined in the Act. This may be accomplished by conducting routine monitoring and audits of the third party to verify that they comply with the requirements. It is also recommended that the responsible institution think about establishing a specialized staff to carry out the monitoring and audits. This will guarantee that any non-compliance is discovered in a timely way and can be dealt with accordingly. Records That Are Either Incomplete or Inaccurate: The institution needs to verify that the records being kept by a third party are comprehensive and error-free. This may be accomplished by doing random spot checks on the correctness of the information as well as conducting regular audits of the data. In addition to this, they need to give some thought to the formation of a dedicated staff for the purpose of carrying out the reviews and spot-checks to guarantee that any faults or inaccuracies are located and rectified in a timely way. Lack of Cooperation with the Centre or the Supervising Body: It is the responsibility of accountable institutions to ensure that they cooperate with the Centre and any applicable supervisory body in giving access to the records and any other information that is required for them to carry out their activities in accordance with the Act. This may be accomplished by consistent contact between the responsible organization and the Centre or other entity serving in the role of supervisor. Also, they need to take into consideration the possibility of forming a specialized team to handle the communication that takes place between the two parties and make certain that all pertinent information is sent in a timely way.	Question 5: Please suggest a process for monitoring here?
Financial Intelligence Centre Act, 2001, Section 42(1)(2)(3) (1) The board of directors of an accountable institution which is a legal person with a board of directors, or the senior management of an accountable institution without a board of directors, must ensure compliance by the accountable institution and its employees with the provisions of this Act and its Risk Management and Compliance Programme. (2) An accountable institution which is a legal person must (a) have a compliance function to assist the board of directors or the senior management, as the case may be, of the institution in discharging their obligation under subsection (1); and (b) assign a person with sufficient competence and seniority to ensure the effectiveness of the compliance function contemplated in paragraph (a). (3) The person or persons exercising the highest level of authority in an accountable institution which is not a legal person must ensure compliance by the employees of the institution with the provisions of this Act and its Risk Management and Compliance Programme, in so far as the functions of those employees relate to the obligations of the institution.	Insufficient Performance of the Compliance Function: To guarantee that the compliance function is carried out in an efficient manner, the institution should make it a point to delegate this responsibility to an individual who has an appropriate level of experience and seniority. This may be accomplished by putting the right rules and processes into place, in addition to conducting frequent performance evaluations of the individual who has been selected. Additionally, they ought to think about establishing a dedicated team to carry out the performance reviews, and it ought to make certain that the designated person has the necessary abilities as well as the authority to guarantee compliance. Negligence on the Part of Workers Regarding Compliance: Holding regular training and awareness seminars for staff members. Also, the institution needs to give some thought to the possibility of forming a specialized team to monitor staff compliance and make certain that all standards are being satisfied. Programs of Risk Management and Compliance that Are Not Up to Par: To guarantee that they are abiding by the requirements outlined in the Act, an institution needs to make certain that they have a risk management and compliance program in place. This can be accomplished by putting in place the appropriate policies and procedures, as well as conducting regular monitoring and audits of the program to ensure that it is operating effectively. In addition to this, the institution ought to give some thought to establishing a separate group that would be responsible for carrying out the monitoring and auditing procedures, as well as ensuring that the program is running efficiently and conforming to the requirements outlined in the Act.	Question 6: Please suggest a process for monitoring here?