In our rapidly changing world, e-payments through electronic money institutions are the new norm. An ever-increasing demand for faster, more efficient payment methods creates pressure on businesses to provide electronic payment facilities. The 2020 global lock down led to many companies hastily implementing online payment systems to enable the continuation of business during a time when physical transactions were impossible. Without a comprehensive audit coverage to mitigate risk and ensure regulatory compliance, the implementation of payment systems could potentially cause serious issues for businesses in the future.
Those operating payment systems face constant challenges with regards to regulations and how to ensure they cover all the risks their company is exposed to. The best way to ensure that your company is protected, and all risks are mitigated, is to have a robust infrastructure to perform operations. The heart of each payment system is its payment platform through which all transactions are executed.
An effective audit program to protect your company
FAI Comply can assist with an audit program to test the quality of payment systems internal controls and compliance with laws, regulations, management policies, procedures and limits. Audit coverage is risk-focused and covers all payment systems including third-party relationships.
An effective audit function includes internal and external audit coverage, tailored to the complexity of the financial institution, and based upon an accurate, enterprise-wide assessment of the institution's risk profile. Due to the potentially large transaction volumes and associated value when initiating payments, internal audit coverage is critical for an effective oversight of the financial institution's payment systems.
FAI Comply can perform an evaluation of the financial institution's payment system business lines on the basis of overall risk to the financial institution. Based on this evaluation, we develop an appropriate schedule of audits. The audit coverage is sufficient to validate the internal control environment surrounding the processing, clearance, and settlement of payment transactions. We review accounting controls and assess the effectiveness of transaction processing, clearance and settlement processing procedures. Find out more about leveraging the benefits of outsourcing internal audit services for your company.
Written by Savvas Patsalides, Director & Founder of FAI Comply