What is the primary focus of the compliance process?

The primary focus of the compliance process is to verify financial losses and resolve disputes. This aspect is crucial in ensuring that transactions are conducted within regulatory frameworks and standards set by governing bodies and industry guidelines. Compliance involves monitoring activities to identify any discrepancies, implement necessary corrective measures, and safeguard both the financial institution and its customers from potential fraud or financial crime.

By emphasizing the resolution of disputes and verification of financial losses, compliance processes help maintain trust in the payment system. They ensure that all parties involved can effectively address and rectify issues that may arise during transactions, ultimately supporting the integrity of the financial ecosystem.

While establishing communication protocols and training staff in compliance regulations are important components of a comprehensive compliance program, they serve as supportive actions rather than being the core focus. Creating new regulations is typically the role of regulatory agencies, not part of the compliance process itself.