How to assess compliance candidates beyond certifications and CVs

Professional certifications, an impressive CV, and years of experience do not necessarily mean that a candidate can perform effectively as a compliance professional. Regulators expect more than a strong understanding of the law – they also expect the ability to make sound decisions in complex situations, assess risks, and work effectively with supervisory authorities. That is why more regulated companies are changing the way they evaluate candidates from the very beginning of the recruitment process. In this article, we explain why CVs and professional certifications are no longer enough, which practical skills truly matter, and how to build an effective framework for assessing compliance candidates.

Why CVs and certifications are no longer enough

A few years ago, relevant education, an international certification, and experience at a well-known company were generally considered sufficient proof of a compliance specialist's qualifications. Today, that is no longer enough. Regulators expect professionals to apply their knowledge in practice, make decisions under uncertainty, and manage regulatory risks effectively.

As a result, more regulated companies are moving away from traditional recruitment methods and evaluating not only a candidate's professional background but also their practical capabilities.

The growing complexity of compliance roles

The responsibilities of compliance professionals have expanded significantly in recent years. In addition to understanding regulatory requirements, they are expected to have expertise in AML, sanctions compliance, corporate governance, risk management, and to adapt continuously to evolving regulatory expectations.

The highest demand is seen across:

Crypto;

Fintech;
Payment institutions;
Gambling;
Investment services.

In many businesses, compliance specialists now play a central role in licensing projects, regulatory inspections, and the development of the company's overall compliance framework.

What regulators expect from compliance professionals

Modern regulators assess not only whether a company employs a qualified compliance professional, but also whether that individual can perform effectively in practice. Increasing attention is given to the quality of decision-making, professional independence, and active participation in the company's risk management framework.

When evaluating candidates, companies should determine whether they can:

Identify and assess compliance risks;
Make well-reasoned AML decisions;
Communicate effectively with regulators and financial institutions;
Apply internal policies in complex or unusual situations.

These capabilities are increasingly decisive during regulatory reviews and licensing procedures, while certifications and previous experience serve only as a starting point in assessing a candidate's suitability.

Practical skills every compliance candidate should demonstrate

Even candidates with strong CVs may struggle if they have never dealt with real compliance challenges. That is why more companies are assessing not only legal knowledge but also the ability to apply it in day-to-day operations. Practical skills provide a much clearer picture of whether a candidate is ready to make decisions, work with regulators, and manage compliance risks effectively.

Real AML investigation experience

One of the most valuable indicators is hands-on experience with AML investigations. Professionals with this background typically have a stronger understanding of risk analysis, suspicious activity, and decision-making in situations where information may be incomplete.

During the assessment, companies should determine whether the candidate has:

Participated in suspicious activity investigations;
Conducted customer risk assessments;
Worked with transaction monitoring alerts;
Prepared suspicious activity reports.

Experience in these areas is often a far better indicator of competence than years of employment or a list of responsibilities on a CV.

Sanctions and regulatory decision-making

A modern compliance specialist must be able to make informed decisions not only on AML matters but also on sanctions compliance. Regulators expect professionals to assess complex situations, evaluate potential risks, and justify their conclusions.

During interviews, it is useful to discuss real examples from the candidate's experience, such as how they handled high-risk clients, assessed sanctions risks, and documented their decision-making process.

Communication with regulators and internal stakeholders

Another essential skill is the ability to communicate effectively with both regulators and internal stakeholders. Compliance professionals regularly explain regulatory requirements to management, participate in regulatory reviews, and help the business make decisions while managing compliance risks.

For this reason, candidate assessments should focus not only on technical expertise but also on the ability to justify decisions, work effectively with senior management, and maintain constructive communication with regulators.

How to test compliance candidates during recruitment

Even an experienced interviewer cannot objectively assess a candidate by relying only on standard questions about previous work experience. A far more effective approach is to use practical exercises that reflect the situations a compliance specialist is likely to face on the job.

This allows companies to assess not only technical knowledge but also a candidate's ability to analyse risks, make sound decisions, and justify their conclusions.

Case-based interviews

One of the most effective assessment methods is the use of case-based interviews. Instead of asking theoretical questions, candidates are presented with realistic business scenarios that require analysis and decision-making.

For example, candidates may be asked how they would respond to a suspicious transaction, a regulatory request, or deficiencies identified in KYC documentation.

These case studies provide a much better understanding of a candidate's reasoning process than questions with predetermined answers.

Scenario-based AML assessments

Another valuable tool is the use of AML scenarios. Candidates are asked to analyse a hypothetical situation, identify the key risks, and explain the actions they would take.

During this assessment, employers should consider:

How logically the candidate analyses the facts;
Whether they can identify priority AML risks;
What measures they propose to mitigate those risks;
Whether they can clearly justify their decisions.

These exercises often reveal the difference between candidates with strong theoretical knowledge and those with genuine practical experience.

Evaluating regulatory mindset

It is equally important to assess a candidate's regulatory mindset—their ability to think from a regulator's perspective rather than simply follow internal procedures.

An experienced compliance professional understands the purpose behind regulatory requirements, can anticipate likely questions from regulators, and identify potential issues before they escalate. This mindset supports better decision-making and helps maintain an effective compliance framework, even in complex or unusual situations.

Common hiring mistakes that lead to poor compliance hires

Even companies with a well-structured recruitment process continue to make hiring mistakes. In most cases, the problem is not a lack of information about the candidate, but the criteria used to evaluate them.

The most common mistakes include:

Overvaluing certificates – placing too much emphasis on professional certifications without assessing practical skills.
Ignoring practical judgment – failing to evaluate a candidate's ability to make decisions in real regulatory situations.
Focusing only on technical knowledge – testing legal knowledge without assessing risk management skills or the ability to work with regulators.
Failing to verify regulatory experience – not confirming involvement in licensing projects, regulatory inspections, or other practical compliance work.
Skipping behavioral assessment – overlooking personal qualities that are essential under regulatory scrutiny, such as independence, objectivity, and the ability to justify decisions.

Most of these issues become apparent only months after the candidate joins the company, once they begin handling key compliance responsibilities independently. That is why successful regulated companies increasingly build their assessment process around practical competencies rather than relying solely on work experience or professional certifications.

Building a structured compliance assessment framework

A single interview rarely provides an objective picture of a candidate's qualifications. A structured assessment process is far more effective, allowing each stage to evaluate a specific set of competencies. This approach reduces subjective decision-making and enables companies to compare candidates using consistent criteria.

An effective compliance assessment framework typically includes:

Screening – reviewing work experience, industry background, and basic role requirements.
Technical interview – assessing knowledge of AML, sanctions, corporate governance, licensing requirements, and related regulatory areas.
AML case study – using a practical scenario to evaluate analytical thinking and the candidate's approach to assessing compliance risks.
Governance discussion – discussing real-life situations involving governance, board interaction, allocation of responsibilities, and regulatory decision-making.
Final assessment – evaluating not only technical knowledge but also the candidate's ability to work under regulatory scrutiny, interact with management, and make independent decisions.

It is important that every candidate goes through the same assessment stages. This makes the recruitment process more objective and helps identify qualities that cannot be assessed through a CV or professional certifications alone.

Companies that adopt a structured assessment framework typically make better hiring decisions, reduce the number of unsuccessful hires, and build stronger compliance functions that are better prepared for an evolving regulatory environment.

How Structum helps businesses recruit and assess compliance professionals

Recruiting compliance professionals requires more than reviewing CVs and checking certifications. Companies need specialists who can perform effectively under regulatory scrutiny, make sound compliance decisions, and support the business as regulatory expectations continue to evolve. Structum helps regulated businesses identify, assess, and recruit professionals with the practical expertise needed to build strong compliance functions.

Structum team helps clients:

Recruit AML Officers, MLROs, and compliance professionals;
Assess candidates' practical AML and regulatory expertise;
Evaluate governance and risk management knowledge;
Verify experience in regulated industries;
Design structured compliance assessment processes;
Conduct candidate competency assessments;
Provide interim compliance specialists;
Support recruitment for licensed businesses;
Strengthen long-term compliance recruitment strategies.

We work with crypto companies, fintech businesses, payment institutions, gambling operators, investment firms, and other regulated businesses where hiring the right compliance professionals is essential for maintaining regulatory compliance and supporting business growth.

If your company wants to improve its compliance recruitment process or assess candidates more effectively, Structum can help identify the right professionals, reduce hiring risks, and build a stronger compliance team. Contact us to discuss your recruitment needs and receive practical support in finding experienced compliance talent.