In a high-stakes regulatory environment, many South African businesses operate under the illusion of compliance until it’s too late. From data privacy and financial licensing to empowerment targets, staying ahead requires more than good intentions. It demands constant assessment, reliable verification, and the agility to adapt, writes Jennifer Barkhuizen, Head of Marketing at Managed Integrity Evaluation (MIE), a business unit of the Mettus collective and one of the largest background screening and vetting companies in Southern Africa.
Operating a business in South Africa today means navigating a dense and ever-evolving web of legislation. The Protection of Personal Information Act (POPIA), for example, governs how organisations collect, store, and use personal information. The Financial Advisory and Intermediary Services (FAIS) Act sets out strict fit-and-proper requirements for individuals operating in the financial sector. Meanwhile, Broad-Based Black Economic Empowerment (B-BBEE) codes continue to shape how companies structure ownership, management, and procurement practices.
Each framework comes with its own compliance demands – detailed documentation, up-to-date policies, regular reporting, and in many cases, external verification. The consequences of getting it wrong, ranging from hefty fines to reputational damage and even criminal prosecution, are too severe to ignore and can lead to fines, operational disruption, regulatory intervention, and lasting erosion of stakeholder trust.
Yet, despite these risks, many organisations remain uncertain about their true compliance status. One of the most common and dangerous assumptions is that compliance is a one-time exercise. Many businesses believe they’re in the clear because they once rolled out a policy or conducted a workshop. However, compliance is not a fixed state. Laws change, internal structures evolve, and verification requirements are updated. Without regular assessments and system-wide reviews, businesses may fall behind without even knowing it.
Who does this apply to?
Take POPIA, for instance. A privacy policy developed two years ago may no longer meet current regulatory expectations, particularly in light of the POPIA Amendment Regulations that came into effect on 17 April. These changes significantly enhance data subject rights and streamline compliance processes, introducing broader access to objection and correction requests, stricter consent rules for direct marketing, improved definitions, and a revised complaints process.
Similarly, an employee in the financial sector who once met FAIS fit-and-proper requirements may now fall short due to lapses in professional development or licensing renewals. Similarly, a company’s B-BBEE scorecard may be invalid if recent ownership or management changes have not been accurately reflected or verified.
Why compliance and verification is important?
Too often, businesses rely on internal processes built on trust or legacy practices, without independent verification. And that’s when gaps emerge, typically during a regulatory audit, client inspection, or, worst of all, a public scandal.
This is why robust verification is no longer optional; it’s a non-negotiable part of responsible governance. Verification services, including comprehensive background screening, employment and qualification checks, and third-party due diligence, provide a defensible line of assurance.
They ensure that individuals hired into sensitive or strategic roles have been properly vetted, that credentials meet sector-specific requirements, and that supply chain partners don’t introduce avoidable risk. These checks go beyond regulatory compliance, and build operational credibility, support internal governance, and enhance a company’s reputation with clients, partners, and investors.
As regulatory frameworks evolve, staying compliant requires more than reacting to changes; it calls for systems that are agile enough to incorporate updates, tools that can automate monitoring and alerts, and teams that are well-informed and empowered to act.
How do you assess your compliance?
To assess and strengthen their compliance posture, businesses must adopt a layered, proactive approach. This starts with internal audits that benchmark existing policies and procedures against current legal standards. Engaging external compliance specialists can help identify blind spots and provide sector-specific insights. Moreover, technology should be leveraged to streamline policy updates, record verification processes, and flag key deadlines.
Most importantly, verification cycles should be embedded into operational rhythms and not treated as isolated tasks. Background checks, credential reviews, and third-party vetting should be scheduled and repeatable. A culture of compliance must be built from the top down, with clear accountability at every level.
Ultimately, compliance is not about fear of penalties; it’s about demonstrating that your organisation operates with integrity, foresight, and accountability. In a business environment where transparency and trust are more valuable than ever, companies that invest in verification and proactive compliance aren’t just protecting themselves, they’re positioning themselves for long-term success. Those who don’t are taking a far greater risk than they realise.
