What Is a Compliance Officer?

Compliance officers help organizations follow the laws and regulations that govern their industry. They primarily aim to reduce legal and financial risk, promote ethical conduct, and develop policies that meet industry standards.

Compliance professionals work in most industries, including the government, financial services, manufacturing, education, and healthcare sectors. Their importance to organizations places them in high demand in many sectors.

For example, Bank Director surveys from 2023 and 2024 found that more than a third of banks expect to hire more compliance officers moving forward.

Have you found yourself wondering, "What does a compliance officer do?" Explore the profession in detail below, including typical tasks, required skills, and industry data.

What Does a Compliance Officer Do?

Compliance officers ensure that individuals and organizations follow all necessary laws and regulations. Their job includes monitoring, auditing, and managing compliance-related issues across various sectors.

While their specific duties depend on the employer and the position, the following list examines some common job responsibilities for compliance officers.

Compliance Officer Areas of Expertise

Compliance officers can specialize in various industries, focusing on the specific sector's laws, regulations, and standards. Developing a specialty allows professionals to demonstrate their expertise and stand out among generalist compliance officers on the job market.

Here are a few possible areas of expertise.

Finance

Compliance officers in finance monitor the policies and activities of financial services organizations, ensuring they adhere to the financial sector's laws and regulations. They work in banks, investment firms, and insurance companies, reviewing and auditing transactions, internal controls, and risk management processes.

Senior-level specialists may help organizations develop compliance strategies. Compliance officers typically report to department leaders who communicate with and advise the organization's executives and stakeholders.

More than other specializations, financial services compliance officers deal with a regularly changing regulatory environment. They require knowledge of the industry, organization, and client-side laws and regulations.

Common Job Titles

• Financial market compliance manager
• Finance risk compliance consultant
• Financial services industry compliance officer
• Compliance and operational risk executive
• Head of compliance

Manufacturing

Compliance officers can oversee the products and practices of manufacturing organizations. They typically work in factories and plants to ensure companies follow proper safety protocols, meet environmental regulations, and comply with industry standards.

Entry-level officers in manufacturing may handle audits and inspections, whereas senior compliance managers develop and implement policies to meet industry laws and regulations. Manufacturing compliance specialists focus more on health and safety and environmental regulations than finance officers.

Common Job Titles

• Manufacturing compliance officer
• Compliance and process improvement manager
• Factory compliance specialist
• Regulatory compliance analyst
• Supply chain compliance officer

Healthcare

Healthcare compliance officers ensure organizations follow proper patient care practices, the Health Insurance Portability and Accountability Act, and industry billing requirements. They typically work in hospitals, medical clinics, and insurance companies to review and audit clinical records, medical practices, and patient privacy compliance standards.

Entry-level healthcare compliance officers review documentation and create reports on their findings. At the senior level, compliance leads implement organization-wide programs and practices. Healthcare compliance officers require advanced knowledge of medical privacy laws and insurance practices while staying on top of any changing health and safety laws.

Common Job Titles

• Healthcare compliance officer
• Healthcare compliance specialist
• Healthcare compliance lead
• Healthcare compliance coordinator
• Healthcare compliance analyst

How to Become a Compliance Officer

Compliance officers typically need a bachelor's degree to enter the field. While specific discipline requirements can vary, a finance, public health, or manufacturing technology degree can help you pursue employment in this field.

Compliance officers usually need several years of experience to advance through the ranks. They can also pursue advanced degrees and/or industry-specialized certifications, such as the certified in healthcare compliance credential from the Healthcare Compliance Association or the certified regulatory compliance manager credential from the American Bankers Association.

Compliance Officer Salary and Career Outlook

While the numbers vary by location and industry, the overall employment outlook for compliance officers is promising, with strong earning and growth potential. According to the Bureau of Labor Statistics (BLS), compliance officers earn a mean annual salary of $84,980 as of May 2024. The top 10% of professionals in this field earn more than $130,000.

In terms of job opportunities, the BLS projects 5% growth in the field from 2023-2033, slightly outpacing the anticipated growth rate for all occupations. This demand comes from organizations in need of professionals who can monitor the ever-evolving laws and regulations and minimize the cost of noncompliance.

Career Spotlight: Dalton Allen

Editor's Note: This interview was edited for length and clarity.

What initially interested you in accounting? How does it relate to compliance?

My interest in accounting originally started as an interest in the business. I had my first business at the age of seven, making and selling luggage tags. At first, my mom was buying all my raw materials, but then she forced me to start buying them myself — she is a business person herself. This was my first real taste of what cost of goods sold was, and I became obsessed with increasing my knowledge.

My interest in accounting as a profession finally took root a few years later after being mentored by my uncle. My uncle, an accountant, started a bank that became wildly successful — and years later ended up being acquired by a major bank. He introduced me to what accounting really is: the backbone of all business. Accountants, more than any other position in an organization, understand the mechanics of an organization. One often-overlooked component of this is compliance … and this is where my uncle really made his mark and changed my perspective on the intersection of compliance and accounting.

Compliance does not need to be a barrier, cost, or administrative burden. By understanding law and regulations and properly evaluating risk, we oftentimes find opportunities where others only find challenges. My uncle taught me at a very young age that if you marry accounting skills with compliance burden, opportunity awaits.

How would you explain the career path that led you to your current role? What do you think helped you most on your journey to becoming the leader of a firm?

My career path follows that of many accountants. After graduating from school, I went into public accounting for a few years, then I moved to the private sector. While I didn't know it at the time, every step I took led me to where I am today. Public accounting was not the right industry for me long term, but I gained exceptional knowledge from that experience.

I learned to tackle the tasks in front of me. [Compliance] careers are very overwhelming, and when we try to digest it all at once we get anxious, make mistakes, or shut down entirely. As I moved on in my career, the tasks got bigger and more complex, but the objective right in front of me is always achievable.

What education (degrees, certifications) did you need or want to pursue your career, specifically the compliance part of it?

Going into the world of compliance doesn't have a set path in the same way a doctor or engineer does. One can approach it in many different ways, but I have found that the most successful compliance professionals have educational backgrounds in accounting or law. However, the bare minimum is a bachelor's degree. Companies hiring for this level of position are going to require a BA/BS nearly all the time.

While there are various compliance certifications, there isn't a clear standard for compliance officers. If you work in a specific industry, you may want to find out if they provide a certification program, like the Society for Human Resource Management does for HR compliance.

Can you describe a typical day dealing with your clients' compliance and regulatory issues?

There are four main compliance and regulatory issues I face regularly:

• Income Tax: This work will involve working with my clients and various tax professionals to establish a tax strategy for both the business and the individual. Because many clients are flow-through entities — meaning that the business owner pays the tax, not the business itself — I also work in conjunction with the business owner to help structure their personal life and residence in such a way that we can maximize the tax benefit.
• Sales and Local Tax: After the 2018 U.S. Supreme Court case South Dakota v. Wayfair, sales and local tax issues have become a hot-button topic. The Wayfair decision dramatically expanded states' authority to collect sales tax for online businesses. Prior to this decision, most online retailers did not have to collect or remit sales tax, but after the decision, they did. Fun experiment: Next time you buy something from a strictly online retailer, pay close attention to the sales tax they are collecting (or not collecting at all). If the amount is different than what you expect, there is a high chance that they are not complying with rules set forth in South Dakota v. Wayfair!
• HR and Employment: Human resources and employment laws are tricky and vary widely based on jurisdiction. Because all my clients have employees, I always run an exposure analysis on new clients. This involves looking at hiring/firing practices, company handbooks, salaried vs. hourly employees, and many more [factors]! I tell my clients that HR and employment are "low-value/high-risk" tasks. This means that by putting extra resources and emphasis into complying with HR and employment law, you don't get an inherent return on investment (ROI) in your business, but the downside is exceptional.
• Industry-Specific: Different industries have different compliance requirements and issues. I specialize in clients in highly regulated industries. In my portfolio, I have clients in healthcare, alcohol, and cannabis.

Which are some of the most rewarding aspects of working in compliance? Some of the most challenging aspects?

Rewarding: Solving issues. Compliance issues in an organization can be incredibly anxiety-inducing, potentially putting the company at risk of closure or default. Once you have identified and corrected an issue, there is an immediate sense of accomplishment that many careers don't have. The fact that you can singlehandedly change the course of a business is both rewarding and scary!

Challenging: Being confronted with issues that have no clear solution. It can be frustrating to know about the issue with no way to solve it. In these situations, we do our best to get as close to compliance as possible and advocate for policy change where necessary.

Can you identify the most important skill compliance officers may need to succeed?

If I had to pick one skill, I would say communication. Can you take what you learned from your research and explain it in a way that a third grader can understand? Many times, businesses are in challenging compliance situations because the reality of the situation has not been explained to the key decision-makers in a way that makes sense to them. If you can accurately and simply explain the problem, why it matters, and your solution, you will have a successful career in compliance.

How would you best advise students considering your career?

Always be learning. I often find that I'll stumble across a random article or be discussing something off-topic with a friend and learn something new, only to have that same thing come up in business six months later. Pursuing knowledge is the most important thing you can do in your career. Sometimes, you can't charge your client for it, but that is OK! I believe that the pursuit of knowledge always has a positive ROI.

Dalton Allen

Dalton Allen is an accountant-turned-CFO who now runs his own fractional CFO firm. Dalton brings a fresh perspective to accounting and inspires his clients to think about their businesses in a new and creative way. He is passionate about helping clients solve complicated problems and absolutely loves a clean balance sheet.

Questions About the Compliance Officer Job Description