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A Compliance Procedure outlines the specific steps and rules an organization follows to meet legal requirements and industry standards. It acts as a practical roadmap for businesses operating in Hong Kong to stay aligned with regulations from bodies like the SFC, HKMA, and Companies Registry.

These procedures help staff understand their daily compliance duties, from handling customer data under the PDPO to maintaining proper financial records. They typically include clear instructions for reporting issues, conducting internal checks, and updating practices when regulations change. Good compliance procedures protect organizations from penalties while building trust with regulators and stakeholders.

Use Compliance Procedures when your organization faces new regulatory requirements or needs to standardize how staff handle sensitive tasks. For Hong Kong businesses, this often means creating clear protocols for financial reporting to the SFC, customer data protection under PDPO, or anti-money laundering checks required by the HKMA.

These procedures become essential during regulatory inspections, staff training, or when expanding into regulated activities. They're particularly valuable when onboarding new employees, updating internal controls after regulatory changes, or responding to compliance incidents. Having documented procedures ready helps avoid penalties and maintains smooth operations during regulatory scrutiny.

• Core Operations Procedures: Day-to-day compliance tasks like client onboarding, transaction monitoring, and record-keeping
• Risk Management Procedures: Specific controls for financial risks, cyber threats, and operational vulnerabilities
• Regulatory Reporting Procedures: Protocols for filing with SFC, HKMA, and other Hong Kong regulators
• Investigation Procedures: Steps for handling compliance breaches and conducting internal reviews
• Industry-Specific Procedures: Tailored compliance steps for banking, insurance, securities trading, or fund management sectors

• Compliance Officers: Lead the development and maintenance of Compliance Procedures, ensuring they meet regulatory requirements and industry standards
• Legal Teams: Review and validate procedures for alignment with Hong Kong laws and regulations
• Department Managers: Help tailor procedures to specific operational needs and oversee staff implementation
• Front-line Employees: Follow procedures daily in customer interactions, record-keeping, and reporting tasks
• External Auditors: Review procedures during compliance audits and regulatory inspections
• Board of Directors: Approve key procedures and ensure overall compliance framework effectiveness

• Regulatory Review: Identify all applicable Hong Kong regulations and guidelines affecting your business activities
• Risk Assessment: Map out key compliance risks and control points in your operations
• Process Mapping: Document current workflows and identify areas needing compliance controls
• Stakeholder Input: Gather feedback from department heads and front-line staff about practical challenges
• Template Selection: Use our platform's smart templates to ensure all mandatory elements are included
• Clear Language: Write procedures in simple, actionable steps that staff can easily follow
• Internal Testing: Trial the procedures with relevant teams before full implementation

• Purpose Statement: Clear objectives and scope of the compliance procedures
• Regulatory Framework: Reference to specific Hong Kong laws and regulations being addressed
• Roles and Responsibilities: Detailed breakdown of who does what in the compliance process
• Step-by-Step Procedures: Clearly numbered operational steps and control measures
• Reporting Requirements: Documentation and escalation protocols
• Review Process: Schedule and method for updating procedures
• Data Protection Measures: PDPO compliance requirements and safeguards
• Record Keeping: Documentation retention periods and storage requirements

While a Compliance Procedure and a Compliance Policy might seem similar, they serve distinct purposes in Hong Kong's regulatory framework. A Compliance Policy sets out broad principles and organizational commitments, while a Compliance Procedure provides detailed, step-by-step instructions for meeting those commitments.

• Scope and Detail: Procedures are operational documents with specific actions and responsibilities, while policies outline general standards and expectations
• Implementation Level: Procedures guide daily activities and tasks, whereas policies establish high-level governance frameworks
• Update Frequency: Procedures require more frequent updates to reflect operational changes, while policies typically remain stable longer
• Target Users: Procedures are primarily used by operational staff and middle management, while policies guide senior leadership and board-level decisions
• Regulatory Focus: Procedures detail how to meet specific regulatory requirements, while policies declare the organization's overall compliance stance