What Does a Compliance Analyst Do? (Salary and Description)

By Indeed Editorial Team

Updated 29 September 2022 | Published 6 December 2021

Updated 29 September 2022

Published 6 December 2021

The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.

Compliance analysts research government and industry compliance standards to ensure that their company or organisation complies with those standards. Also known as compliance managers, their goal is to communicate requirements to their organisation and apply for compliance certification on behalf of their organisation as necessary.

Understanding the purpose of this role may help you decide if this line of work is right for you. In this article, we answer the question, 'What does a compliance analyst do?' explain their requirements and skills and discuss the industries in which compliance analysts may work.

What does a compliance analyst do?

Knowing what does a compliance analyst do can help you gain a better insight into the field. A compliance analyst does detail and math-oriented work similar to an accountant. To be certain that the organisation abides by federal and industry rules, a compliance analyst may strive to be extremely diligent in evaluating and updating the organisation's operational procedures. The following are possible responsibilities a compliance analyst might have:

  • researching and compiling federal and industry regulations

  • evaluating the organisation's compliance with federal and industry regulations

  • applying compliance standards to an organisation's operation

  • performing qualitative and quantitative analysis of billing data to ensure accuracy of provided data

  • analysing potential discrepancies in data or organisational compliance

  • suggesting possible solutions to discrepancies

  • documenting internal procedure and compliance

Related: What Is a Compliance Officer? Definition and Career Guide

Requirements for a compliance analyst

A strong potential candidate for a compliance analyst position may have the following education and job history:

  • bachelor's degree in an industry-related field

  • accredited compliance management certification

  • previous experience as a compliance analyst in a related field

  • in-depth familiarity of federal and industry compliance standards

  • familiarity with compliance management software

  • ability to analyse organisational operating procedures and accounting documentation

A compliance analyst is responsible for familiarising themselves with their organisation's operating procedure and performing modifications as necessary.

Skills of a compliance analyst

A compliance analyst may have responsibilities spanning from auditing to research and report writing, so their skill set can be extremely detail-oriented with a focus on math. Paying attention to a variety of small details at the same time can be an asset to a compliance analyst. The following is a list of skills an analyst may have:

  • Customer service and interpersonal skills: An essential aspect of a compliance analyst's work is not only knowing federal and industry regulations but being able to implement them into the daily procedures. This means that you may train employees to perform different procedures than what they have already learned and effectively explain why a procedural change is necessary.

  • Ability to train other employees: You may teach other employees new procedures that the company is implementing. This may involve learning the material well enough to effectively teach another employee about it.

  • Strong organisational skills: Depending on the industry, there may be many different regulations with which the company's procedures may comply and many areas of the company that may comply with these rules. Rigorous evaluations of all operational areas in the company may be necessary to ensure these standards are being followed.

  • Strong research skills: A compliance analyst is typically familiar with the federal and industry regulations to which their company is held. This may involve intensive research to familiarise yourself with these standards.

  • Advanced analytical abilities related to mathematics: A compliance analyst's work somewhat overlaps with an account's work, in that they may audit their company to ensure they are following federal and state guidelines. You may require analysing numerical data in a timely manner to determine if your company's financial procedures meet industry guidelines.

  • Professional networking skills: A compliance analyst usually communicates with clients, managers and employees about facts and concerns regarding the organisation's procedural compliance. Internal information from employees who could possibly discover new procedural issues may be invaluable in your compliance research.

How much does a compliance analyst make?

The average base salary of a compliance analyst is $6,199 per month. The salary may differ based on your experience and skill set. An attractive candidate for a higher-paying compliance analyst position may have a bachelor's degree and an advanced degree related to the field you're entering. Being able to demonstrate your understanding of the regulations in your chosen field may help prove that you're a knowledgeable candidate. You may also provide evidence that you have prior work experience in your field.

Industries hiring compliance analysts

Compliance analysts could work in several different fields, depending on the education qualifications they possess. Here are the three main fields in which compliance analysts typically work:

Financial services

A financial compliance analyst monitors customer accounts and researches suspicious transactions to catch any potential illegal activity. Financial compliance analysts typically research and report on new methods that fraud perpetrators are implementing and stay up to date on new or changing banking regulations.

This position is typically closely monitored and usually reports to a manager or the head of a department. Financial compliance analysts may work on projects of limited complexity and act as a support role for the head of their department. These positions can be entry-level, but some may require at least two years of experience.

Health care

A health care compliance analyst works to prevent fraud and protect sensitive patient information from malicious outside sources. Their efforts supply their department head with information with which the department head can make decisions about the company's procedural compliance. In the role of a health care compliance analyst, you may present conclusions and recommendations based on your research, which could include changes to company procedure, potential intervention in non-compliant areas, suggesting more efficient solutions and identifying shifts in patient data.

A healthcare compliance analyst may present their findings if any action is necessary. They may keep detailed and accurate notes on their findings to share with regulators and auditors from both inside and outside the company. A health care compliance analyst typically has a background in health care and health care information systems.

Telecommunications

A telecommunications compliance analyst is familiar with managing regulatory requirements in various telecommunication services, such as cellular, Voice over Internet Protocol (VoIP) and over-the-top messaging (OTT). This position typically requires obtaining and renewing various telecommunication licenses or permits and submitting registrations or notices as necessary. You may also submit regulatory reports to federal agencies and pay certain regulatory fees.

A telecommunications compliance analyst is responsible for staying aware of any new or updated regulations to ensure their organisation remains compliant. If regulations do change, it is their responsibility to effect change within the organisation by bringing this information to their department head along with recommendations for what changes they can implement. Telecommunication compliance analysts typically may have a bachelor's degree in Engineering or a related field and at least five years of experience in the Singapore telecommunications industry.

Compliance and ethical procedures

Beyond having a thorough understanding of the laws and regulations that govern their organisation's industry, a compliance analyst may also have extensive knowledge of ethical practices in their industry. Generally, ethics are left up to the interpretation of the compliance officer, or the compliance analyst's manager, but there may be industry standards. For this reason, a compliance analyst is typically very familiar with their organisation's underlying values. They may make subjective decisions based on their interpretation of the company's ethical standards.

To draw examples from the industries listed above, here are some potential ethically based decisions a compliance analyst may assist a compliance officer in making:

  • In the financial sector, a compliance analyst may create anti-money laundering initiatives, such as continuous learning for employees that explain how they can remain compliant with the organisation's regulations.

  • In the healthcare sector, a compliance analyst may develop and disseminate a training program that stresses the privacy laws in place are meant to protect patients' sensitive information and that every employee can help to keep the patient information private.

  • In the telecommunications sector, a compliance analyst may create a public service announcement in response to new, stricter privacy laws that stresses the importance of using hard-to-guess and unique passwords.

A growing understanding of these standards is generally considered part of a compliance analyst's work. By understanding their industry's standard ethical practices, a compliance analyst can push for a shift in perspective. Given that these practices are more interpretive, a compliance analyst may try to reach the average person and other employees in their organisation with solid evidence and a knowledgeable background to make their point.

Related: What Is a Code of Ethics in Business? (With Examples)

Explore more articles