When it comes to running a business, compliance is everything. It means you need to be aware of the legal framework in place to keep you and others safe, and you are abiding by the best practices to ensure complete safety. Exactly what you need to be compliant with can vary from business to business and is largely dictated by what you do, how you operate and the scope of the work you carry out. For example, an ecommerce business will have different compliance targets to meet than a brick-and-mortar store that has customers on the premises.
Here are some major ones you need to be aware of to give you a more in-depth idea of how to be compliant.
Money Laundering Regulations
Businesses must ensure compliance with money laundering regulations to prevent financial crimes. Non-compliance can lead to severe legal implications, including penalty charges, fines, revocation of licenses, and even imprisonment. These consequences underscore the urgency of understanding and adhering to these regulations.
One effective method to protect your business is through the use of KYC and KYB checks. These checks play a crucial role in ensuring compliance with financial regulations, thereby providing a sense of reassurance. Early identification of fraudulent financial transactions can help prevent financial losses, making these checks an invaluable tool in your compliance arsenal. An account information service provider can be of great value here.
Health and Safety
The Health and Safety at Work Act 1974 is a legal guideline for businesses to protect their employees and customers when engaging with the business. Every single business needs to be aware of these regulations, and any breaches or failure to comply can result in massive complications such as legal battles, reputational damage, and financial losses. A lack of health and safety in the workplace can lead to increased injuries and even risk to life; in the 2023/24 period, 138 workers were killed in work-related accidents. Not only will this seriously impact your employees and even customers if it’s unsafe for them, but it can damage your business, too. From fines, loss of licenses, and prison time, flouting health and safety compliance is a massive risk you should not be taking.
Data Protection
Everyone has heard of GDPR, which is the General Data Protection Regulation, and it’s the strongest privacy law in the world. Neglecting to adhere to GDPR can be disastrous. It was put in place in May 2018, and it serves to protect the data businesses and organisations hold on people and aims to stop it from falling into the wrong hands. As we live in an increasingly digital world, to be able to meet standards, you need to obtain permission to collect data, obtain data lawfully and fairly, and allow users to access, control and delete their data and choose what that data you collect on them and have robust cyber security measures in place for protection from the customer and the business.Â
These are just 3 significant areas your business needs to be compliant with; there will be other more niche-specific ones you might need to follow, including alcohol licensing regulations, tax compliance, and so many more, so it’s important you understand your legal responsibilities to avoid complications.
