As the year end approaches, the stakes are higher than ever for businesses to stay compliant. The consequences of non-compliance are severe -fines, penalties, and potential loss of revenue could cripple even the most established companies. A minor oversight could lead to massive penalties.
Imagine starting the new year with the aim to innovate and expand, but you are blindsided by regulatory penalties for missed deadlines. This was the case of fintech and microfinance institution, Eyowo.
In early 2023, the Central Bank of Nigeria (CBN) revoked Eyowo’s licence, along with the licences of 46 other microfinance organisations, citing inactivity, failure to render returns, and non-compliance with regulatory obligations. This decision damaged Eyowo’s credibility with investors and partners, causing an uproar among customers who had once trusted the platform with their financial transactions.
By June 2024, Eyowo announced that its licence had been fully reinstated by the CBN, however the damage had already been done. The company will face significant hurdles in regaining the trust of its stakeholders. Despite the licence reinstatement, Eyowo continues to grapple with the consequences of its non-compliance, struggling to rebuild its reputation in the highly competitive fintech landscape.
Futuristic companies realise that compliance is more than a box to tick, but an active step to be taken to build trust in the eyes of stakeholders, customers and potential investors. When a company consistently meets its compliance obligations, it demonstrates reliability, transparency, and sound governance.
Across the globe, regulators are imposing hefty fines on companies that fail to meet their obligations. For example, in the USA, Epic Games was fined $520 million for violating children’s privacy laws. In Finland, Vastaamo Psychotherapy Centre faced a €608,000 penalty for breaching the General Data Protection Regulation (GDPR). Meta was also fined €91 million for violating these same General Data Protection Regulations in Ireland. These examples highlight the global nature of compliance challenges and the severe financial consequences of non-compliance.
With AutoComply, you get a proactive, tech-driven approach towards compliance, keeping you one step ahead. Starting with our Compliance Compass, you can get specific regulatory obligations based on your industry and location.
Once you’ve identified your obligations, AutoComply helps you stay on top of them with automated reminders and real-time updates, ensuring that deadlines are never missed. We make compliance effortless by providing features like task management, easy reporting tools, obligation notifications and more, thus allowing you to focus on growing your business without worrying about costly penalties or fines.