GUIDE 2022

What Does a Compliance Analyst Do?

Compliance analysts are an important part of any organization that deals with sensitive or regulated information. They ensure that the company is in compliance with various regulations and laws, such as HIPAA (Health Insurance Portability and Accountability Act) or GDPR (General Data Protection Regulation). This blog post will detail what a compliance analyst does on a day-to-day basis

Whatever the level of the compliance analyst, they must communicate results accurately, perform well under pressure, and solve complex problems.

Since the last two decades, the requirement for Compliance Analyst has increased exponentially. Particularly in the heavily regulated industries such as the financial services and healthcare industry, the demand is high.

Usually, the entire team of compliance goes together, including the legal teams and risks, to assure all compliance policies are renewed and sufficient risk administration. Compliance analysts perform a role by allowing potential suggestions based on analysis and careful research.

In this article, let’s look at the job duties, roles, abilities, and job responsibilities of a compliance analyst. 

What Does a Compliance Analyst Do?

The compliance analyst plays an important role in maintaining regulatory and legal compliance by communicating, researching, and analyzing regulatory needs and getting the appropriate approvals.

But a few people and even the companies combine up the different job types. For instance, many companies use the compliance analyst job title for the job title of compliance officer. The companies provide position alerts on different job boards that mention a compliance officer as a compliance analyst. And it directly creates confusion among job seekers.

Putting two different jobs under the same category creates hassle. But some roles, responsibilities, and duties overlap for both the compliance analyst and compliance officer.

The small companies’ job description of compliance analysts usually involves the roles of both compliance officers and compliance analysts. But, more prominent organizations or medium-sized companies often differentiate between the two jobs.

Generally, in the U.S, an established organization has at least one of the following compliance jobs including entry-level compliance analyst, senior compliance analyst, compliance officer, compliance manager, compliance specialist, and corporate compliance officer or a chief compliance officer.

Sometimes, the compliance analyst works along with the compliance head and other compliance officers. They further support the compliance program and plan by studying and analyzing relevant laws, regulations, and rules. Additionally, they operate a vital role in analyzing program and compliance audits effectiveness.

According to the organization and projects, the compliance analyst is expected to have the foremost and complete understanding of all industry regulations.

Compliance Analyst Duties and Tasks

Every compliance analyst has different tasks, responsibilities, and duties due to various job descriptions. Depending on the organizational structure and size of the organization, the services can increase or decrease. But, there is a clear set of tasks and duties that every compliance analyst should be ready to work on.

The following responsibilities, duties, and tasks are what the common compliance analyst has to handle in any state.

Report to the compliance manager, senior compliance analyst, corporate compliance officer, chief compliance officer, or compliance head with the important analyzed data regarding regulations and laws.

Research various rules, regulations, and laws by reviewing news briefs, federal updates, regulatory bulletins, and other information reasons.

Keep other departments, including the human resources, legal, finance, and different departments, updated on regulatory documentation processes, regulatory filling information, and requirements.

You may have to communicate and write guidelines to relay the knowledge to various employees.

Compile all the data by coordinating and collecting rate deviation filings. And update important information and offer overviews of all product and service exposures. 

Compliance Analyst Job Responsibilities

The work of a Compliance Analyst is based on the industry and role, and their duties and responsibility may consist:

  • Ongoing reporting or auditing on the company’s compliance
  • Proactively searching for staying up to date with rules and regulations
  • Documenting or implementing all procedures and policies
  • Analyzing, identifying, and solving compliance problems.
  • Communicating regulations to external and internal parties
  • Communicating across departments/stakeholders to assure alignment of aims
  • Working as a subject-matter specialist on all compliance-related subjects
  • Maintaining and developing relationships with the right parties
  • Developing workflows and procedures to meet standards of compliance documentation
  • Creating or executing any employee training sessions and documents

Compliance Analyst Skills and Abilities 

  • A bachelor’s degree in business, accounting, or another related that’s suitable in the industry.
  • A master’s degree is not a necessity but a preference.
  • Minimum 2 to 5 years of experience must be in compliance analysis; a compliance officer or compliance auditing is needed. And it would be best to have previous experience in the same field and a similar company.
  • If you have a background in compliance, auditing, and another regulatory field, it is better.
  • You should learn and work on all Microsoft Office products, such as SharePoint, Word, Excel, PowerPoint, ad Outlook. Additionally, it’s recommended to know relevant software in analysis and auditing.
  • Excellent analysis and research skills are required to examine existing or new rules, regulations, and laws.
  • Also, critical thinking skills are needed to create workable solutions for new analyses.
  • Problem-solving skills are mandatory to rectify any compliance problem that may come while compliance audits.
  • Excellent communication skills are required to work with compliance officers and their heads efficiently.
  • It’s essential to have strong written and verbal communication skills and showcase technical proficiency to relay information efficiently.
  • Skills of follow-up skills are required to keep up with different tasks, compliance plans, and projects simultaneously.
  • You have to be detail-orientated to match compliance standards and achieve strict deadlines.  

Each compliance analyst should possess these skills, abilities, and qualifications. But, you should work on also obtaining industry-specific knowledge and certifications.

Compliance Analyst Salary 

A compliance analyst has various salaries according to different sites.

In the United States, according to Glassdoor, the average salary of a full-time compliance analyst is approximately $60,764. Additionally, the salary ranges all the way up to $151,000.

The salary of a compliance analyst generally depends on the industry and organization. When you are in a heavily regulated sector, it will need more knowledge, better qualifications, and more years of experience; thus, increasing the salary.

Also, the salary depends on the company or organization’s entire structure. When the company is massive, compliance analysts get highly paid and even more than compliance officers. But, smaller organizations used to create their packages according to the entire workload.

Final Verdict

When you have excellent qualifications and industry experience, then you can become a compliance analyst. First, you need to research for a great college or institute and then join it for appropriate knowledge of that industry’s laws and regulations. Working with an audit or compliance office will help you to get the necessary experience. If you have the required experience, then you can apply to become a compliance analyst.

Remember, working and assisting fellow compliance professionals in their work will help you get a better idea.

FAQ

What Degree Should I Prefer to Become a Compliance Analyst?

It doesn’t require banking or asset management academic knowledge.

  • You can have a postgraduate law degree (International Banking Law/ LLM in Financial Law) will be great.
  • Many professional examinations like the FSA / Basel Compliance/ IOSCO/ AML/ CFE -KYC Certifications are available.
  • Many universities also offer a specific degree. 

How Can I Get Into Compliance?

Compliance includes monitoring process, an audit function, writing procedures and policies, anti-money laundering, healthcare, and fraud.

So first you need to decide what sector you have the interest to work in.

Compliance is the overseeing of organizations or government-entities process and policies to decrease risk. Once you have cleared your mind, then compliance is a good sector to start in. 

What Skills are Required for Becoming a Great Compliance Analyst?

Here is the list of essential skills that compliance analysts should have to become successful.

  • Great Organizational Skills.
  • Efficient Communication Skills.
  • Excellent in Problem-solving.
  • Interpretation & Assessment.
  • Must have Thinking Ability.
  • Integrity.
  • Creativity.

Is Compliance Analyst a Good Career Option?

If you are a trained compliance analyst having excellent knowledge and experience of all rules and regulations, then your path is clear. You can make your career in this field. Many organizations are preferring well-trained, experienced compliance analysts and providing them an attractive salary.