The landscape of compliance investigations: an introduction 

Compliance investigations are becoming increasingly important for organizations as the scope of compliance work expands due to new laws and regulations. Reliability, integrity, and adherence to those laws and regulations are essential to maintaining the trust of customers, regulators, and employees. 

At Compliance Champs, we offer various types of compliance investigations. These investigations share many similarities but also have clear distinctions. 

In this blog series, we will walk through the different types of compliance investigations step by step: from exploratory to forensic, from data-driven to people-focused, what they deliver, and most importantly, when to use them. 

This first article provides an overview of the different types of compliance investigations conducted today, their objectives, and how they contribute to a healthy and future-proof organization. 

What are compliance investigations? 

Compliance investigations are structured processes designed to determine whether and how rules, laws, internal procedures, and codes of conduct are being followed within an organization. They provide insight into potential violations, risks, and areas for improvement. The focus is not only on hard facts (such as fraud or misreporting) but also on soft factors such as culture, behavior, and leadership. 

Types of compliance investigations 

There are various types of investigations, each with its own focus and purpose: 

  • Fraud investigations: Focused on detecting and establishing fraud or financial misconduct. These often begin with reports or irregularities and typically require a combination of data analysis, interviews, and forensic techniques. 
  • Integrity investigations: Focused on identifying possible conflicts of interest, corruption, abuse of position, or other breaches of integrity. This type of investigation often also looks at behavioral patterns within the organization. 
  • Labor law compliance investigations: These investigations focus on workplace-related issues such as non-competition clauses, theft of company information, or sexual harassment, with strong emphasis on privacy and legal frameworks. 
  • Due diligence and reputation research: Prior to mergers, acquisitions, or investments, in-depth research is conducted to identify integrity risks, sanctions risks, and reputation issues. 
  • AML and KYC investigations: Primarily relevant for organizations in the financial sector, these focus on preventing money laundering and understanding customers, using thorough client reviews and ongoing monitoring. They can also be valuable for companies not subject to AML regulations. 
  • Compliance audits: These audits assess compliance with anti-money laundering (AML) and customer identification (KYC) requirements. They evaluate whether processes effectively manage risks related to customer acceptance, risk classification, transaction monitoring, and reporting procedures. Policies, procedures, and practices are reviewed to identify gaps and strengthen compliance and risk management. 
  • Whistleblower investigations: Initiated in response to reports, these independent fact-finding investigations are conducted with strong safeguards for anonymity and careful follow-up. 
  • Culture and behavior measurements: Investigations that measure the effectiveness of soft controls, such as reporting culture, ethical behavior, and leadership. These are often carried out through surveys and analytical tools. 

Coherence and integrated approach

Organizations sometimes choose to combine different types of investigations in integrated compliance and governance programs. This provides broad insight into risks and offers opportunities to strengthen compliance structurally—both in terms of processes and organizational culture.

What else can you expect? 

In this blog series, we will take a closer look at each of these types of compliance investigations. We will discuss methodologies, best practices, current developments, and lessons learned from real-world practice. In doing so, we aim to help you navigate this complex and dynamic field with greater confidence. 

 

Would you like to learn more about how to effectively prepare your office for these upcoming changes? Compliance Champs has extensive knowledge, experience, and expertise to provide advice and support during implementation. Contact us for a free introductory consultation.



Get in touch

Dennis van der Meer | +31618948848 | dennis.van.der.meer@compliancechamps.com

Boy Custers | +31649935735 | boy.custers@compliancechamps.com

 

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