regtech - Blog - Global Risk Community2024-03-19T02:17:28Zhttps://globalriskcommunity.com/profiles/blogs/feed/tag/regtechWhat Businesses Need to Succeed in Regulatory Change Management for 2021https://globalriskcommunity.com/profiles/blogs/what-businesses-need-to-succeed-in-regulatory-change-management2021-09-17T09:35:00.000Z2021-09-17T09:35:00.000ZChristine Thomashttps://globalriskcommunity.com/members/ChristineThomas360factors<div><p>While all of the actions, planning, strategy, and work that companies have undertaken to manage regulatory changes are crucial, it is critical to recall where it all began. A firm can only take the appropriate action and make the appropriate decision if it has the appropriate attitude. Businesses that truly want to thrive will need to modify more than a few action items in their plans and components of their strategy - they will need to look at the broad picture and ensure that all decision makers and stakeholders within the organization have the proper mentality. </p>
<p>This is critical to remember given the unique nature of not only 2020, but also 2021 and 2022. Everyone is aware of what has occurred and how it has affected the world; nonetheless, it is critical to recognize that the year 2021 is markedly different from 2020, and consequently, the year 2022 will also be different when it comes to the pandemic's repercussions. 2020 was a year in which businesses attempted to survive to the best of their abilities, 2021 was a year in which businesses attempted to capitalize on new opportunities, and 2022 will be the year in which the global community adjusts to the new normal. </p>
<p><span style="font-size:12pt;">Changing Needs of a Changing Regulatory Environment </span></p>
<p>There are six considerations businesses should make as they prepare for regulatory change management in 2021. The first point is that firms must comprehend that 2020 was not the same as 2021. Nobody anticipated the epidemic in 2020, which is why the government also granted businesses considerable latitude in terms of reporting and monitoring. Not only so, but customers also received significant assistance in the form of cheap interest rates, stimulus cheques, and PPP loans. </p>
<p>It's critical to remember that, while the reforms implemented in 2020 benefited businesses, banks, and even consumers, they also presented some new obstacles. Additionally, rule changes introduce new risks or alter existing risks, such as increased default rates associated with extension, forfeiture, and other concerns. Banks, for example, face a troublesome danger when historically low interest rates result in less profit but the same volume of loans to process. </p>
<p><span style="font-size:12pt;">2021 Is the Year of Reconstruction </span></p>
<p>The most noticeable difference between 2020 and 2021 is that 2020 was a year of survival, whereas 2021 is a year of recovery. Businesses and governments were doing the best they could with few information and no news of the pandemic's conclusion. The year 2021 offers an entirely different picture of society and commerce. Vaccines are now widely available, and the health care industry is far more efficient in managing the disease than it was a year ago. </p>
<p>This means that enterprises will now resume more typical operational procedures. All of the leeway granted in 2020 will gradually be withdrawn. Businesses would have to shift gears and begin capitalizing on newly available opportunities, rather than simply focus on survival, as they did the previous year. </p>
<p>Managing regulatory change has always been both an art and a science. When it comes to implementing rules and ensuring that all corporate activities conform with the new legislation, it is a science. It is also an art, because the greatest regulatory change management professionals do not just focus on new legislation; they anticipate regulatory changes as well. When we examine the statements made by government authorities throughout the preceding year, we see that the majority of them focused on pandemic management. However, if we examine what they're discussing now, it's evident that their focus has moved. Additionally, the present administration has not only announced the appointment of new individuals to run regulatory agencies but has also created wholly new designations and roles inside regulatory organizations. </p>
<p>Every indication point to a sea change in the way organizations and enterprises are controlled. One of the most significant changes will be in the way firms are judged. The days of firms being evaluated solely on the basis of their financial performance may be numbered, as numerous new aspects and considerations are being incorporated into the way company performance and a business's impact on society are measured. The prudent course of action at the moment is to ensure that your firm has a <a href="https://www.360factors.com/regulatory-change-management-software/">regulatory management software</a> in place that is capable of rapidly adapting to the new rules and regulations anticipated under the new administration. </p></div>The RegTech drive and investment powering industry growthhttps://globalriskcommunity.com/profiles/blogs/the-regtech-drive-and-investment-powering-industry-growth2021-06-18T09:00:00.000Z2021-06-18T09:00:00.000ZCheri Burnshttps://globalriskcommunity.com/members/CheriBurns<div><div class="row justify-content-between align-items-center flex-nowrap header__main_row">
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<p>The <a href="https://www.encompasscorporation.com/blog/regtech-compulsory-fight-against-financial-crime/">‘new normal’ for business</a> sees professionals combine days working from home with days in an office. This change is giving new impetus, and importance, to digital transformation initiatives.</p>
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<p>Characterised by tasks combining clerical and knowledge work with handover between tasks achieved ad-hoc via electronic communications, long-established operating processes are proving inadequate for this ‘new normal.’ </p>
<p>The need to modernise, and equip teams and individuals to work as productively beyond the office as within it, is driving investment in digital platforms. Delivered as software-as-a-service from the cloud, these platforms mean location is no barrier to productivity and success.</p>
<p>Until recently, <a href="https://www.encompasscorporation.com/blog/digital-transformation-automation-banks-future/">digital transformation programmes</a> have bypassed the operations teams responsible for ensuring compliance with regulations. Why is this? An explanation could be that, while compliance is a necessary cost of doing business in regulated sectors, it can be viewed by executives who steer the revenue engines of their firms as a sinkhole consuming ever greater resources but contributing little to their growth agendas.</p>
<p>For several years now, those responsible for upholding regulatory compliance across industries have regarded and promoted RegTech as a tool that allows firms to build compliance cultures and improve operational performance. These bodies include the Commodity Futures Trading Commission in the US, <a href="https://www.encompasscorporation.com/blog/partner/financial-conduct-authority/">the Financial Conduct Authority (FCA) in the UK</a>, the Monetary Authority of Singapore, and the Australian Securities and Investments Commission. </p>
<p>Looking at the impact of RegTech specifically, partnering with the City of London Corporation, RegTech Associates undertook analysis <a href="https://www.rtassociates.co/regtech-uk-research/" target="_blank">in their report </a><em>2021: A Critical Year for RegTech</em>, assessing the annual cost of financial crime compliance in the UK as $49.5bn, while estimating that RegTech could save at least 0.05% of total compliance costs.</p>
<p>On the upward trend in investment that we are seeing in the sector, in <a href="https://home.kpmg/xx/en/home/insights/2021/02/pulse-of-fintech-h2-20-global.html#:~:text=Fintech%20investment%20down%20significantly%20in,acquisition%20of%20WorldPay%20by%20FIS." target="_blank"><em>Pulse of FinTech H2 2020</em></a>, a KPMG report, it was said that “interest in regtech solutions skyrocketed as companies working to digitize processes quickly to support shifting business and consumer demands looked for efficient and cost-effective ways to manage their regulatory requirements in a shifted business environment. This growing interest drove regtech funding to US$10.6 billion, well above the previous high of US$6.5 billion seen in 2018”. </p>
<p>In recent months several privately-held vendors have also announced significant investment in their companies, including Encompass, after securing new <a href="https://www.encompasscorporation.com/blog/encompass-secures-investment-from-beacon-equity-partners-to-power-growth/">investment from Beacon Equity Partners</a>, a Boston-based private equity group.</p>
<p>We should expect that digital platforms reset the economics of compliance. A challenge for RegTech vendors aspiring to be viewed as peers to other technologies underpinning broad digital transformation is to convince executives managing business teams that their digital platform makes a significant recurring contribution to their firm’s growth.</p>
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</div></div>What 2021 Means for Regulatory Change Managementhttps://globalriskcommunity.com/profiles/blogs/what-2021-means-for-regulatory-change-management2021-05-07T16:54:38.000Z2021-05-07T16:54:38.000ZChristine Thomashttps://globalriskcommunity.com/members/ChristineThomas360factors<div><img src="https://storage.ning.com/topology/rest/1.0/file/get/8903036065?profile=RESIZE_400x&width=400"></div><div><p>Regulatory change managers do not have an easy job during normal times. They must make sure that every process in the organization adheres to the regulatory framework. They also need to make sure that their organization is prepared for expected regulatory changes as well. This means that they need to have a pulse on very niche information and analytics to perform a task that is critical to the existence of the business. However, 2020 and 2021 can hardly be called normal times. The job that is tough in normal times becomes even more demanding when everything else is volatile. </p>
<p><strong>The Link Between Regulations and Stability </strong></p>
<p>It is important to understand the link between stability in the economy and regulatory changes. When everything is working the way it should, governments have no incentive to change the regulatory framework. There are periodic updates to cover new issues and technologies, but the regulatory framework otherwise remains the same. There are updates whenever there is a major regulatory failure or in uncertain economic times. The 2008 financial crisis is a good example of a major failure. There was a regulatory reckoning after 2008, resulting in many new rules and regulations that businesses must now abide by. </p>
<p>2020 is a great example of uncertain economic times. The pandemic and the ensuing shutdowns have introduced a significant amount of volatility to all markets. Multiple parts of the economy are still shut down. More worryingly, there are new variants being discovered which may prolong the pandemic. All these factors have resulted in the economy being more vulnerable than it has been perhaps since the great depression. The government has all hands-on deck and is doing whatever it can to help it survive the pandemic. </p>
<p>This means that there are a lot of regulatory updates being made, but most of these are currently making things easier for businesses. The government knows that regulatory pressure is the last thing that businesses need in these times, which is why it has reduced reporting requirements and has given businesses more time to provide the reports that are still required. However, these are temporary measures that will soon be replaced with something else. </p>
<p>That is a major reason why businesses are so interested in regulatory change management technology in 2021. Every smart business owner knows that there are some regulatory updates coming in the next few months. The problem is that we cannot expect these changes to happen only once. The pandemic is evolving, and we cannot predict how it will go in the next few months. The actions taken by the regulatory bodies will depend on many similar unknowable factors. </p>
<p><strong>Out of the Ordinary Regulatory Changes </strong></p>
<p>Governments generally plan and implement regulatory changes very slowly. No government wants to harm the businesses that are helping the economy, which is why governments make sure that if there are any major regulatory updates coming along, they are announced as early as possible. The governments don’t announce the regulatory changes – they begin by announcing their intent to change regulations. Then they work with experts from within the industry, taking feedback from the biggest players, to create a set of regulations that solves the problem while still being sustainable for businesses. Once the regulatory changes have been finalized the governments announce the changes and give businesses a lot of time to come in compliance with the new rules. </p>
<p>We cannot be sure that the same process will be followed in 2021. There simply isn’t enough time for the government to give to businesses to comply with the new regulations and be involved in the planning stages. The pandemic has ravaged the economy and governments want to get it in control as quickly as possible. They are doing this by changing the regulatory framework and adjusting as the pandemic itself evolves. </p>
<p>This means that there isn’t just one set of regulations that businesses must manage; they need to instead manage the volatility in the regulatory framework itself. This is why Regtech has suddenly increased in demand so much across the world. Businesses knew that Regtech could help them manage regulatory changes better, but there was no immediate need for Regtech. It was one of those things which the business planned to do when it was comfortable with it. 2020 has introduced so much volatility that Regtech has become an immediate need for any business operating in the financial sector. </p>
<p>The good news is that there are a lot of <a href="https://www.360factors.com/regulatory-change-management-software/">regulatory change management software</a> available on the market. The wide variety of solutions available means that every business will be able to find a solutions that fits both its needs and its budget. </p></div>Why Businesses Should Invest in GRC Solutionshttps://globalriskcommunity.com/profiles/blogs/why-businesses-should-invest-in-grc-solutions2021-02-05T09:00:00.000Z2021-02-05T09:00:00.000ZChristine Thomashttps://globalriskcommunity.com/members/ChristineThomas360factors<div><p><a href="http://360factors.com/grc">GRC tools</a> have truly come of age in the past few years. There was a time when GRC solutions were clunky pieces of software which were hard to implement for businesses and cost millions of dollars to implement. Even though these solutions were so complicated, they did not really provide too much of a benefit and were only beneficial for very large businesses which had a lot of governance, risk, and compliance workloads. However, like all technologies, the price of GRC solutions has gone down, and their usefulness has increased significantly. That is why this is the perfect time for businesses to invest in GRC solutions. </p>
<p><span style="font-size:12pt;">Decreasing Costs and Increasing Features </span></p>
<p>GRC solutions were so expensive because they required a lot of hardware and maintenance to run. Any software solution requires maintenance as well as hardware if they are being implemented on premise. This is a very important distinction, and every business owner needs to understand why on-premises is no longer the smart approach to take for any sort of technology Implementation. Cloud solutions have significantly decreased the investment required for cutting edge GRC solution that quickly starts delivering ROI (return on investment). </p>
<p>A decade or two ago, when a business wanted to implement a GRC solution, it would first have to pay millions of dollars to buy a solution which it can use. That was not the end of it, because there were a lot of other expenses attached to be able to actually use the solution which the company had already paid for. Once they had paid for the solution, they would also have to pay the implementation team which would travel from the vendor's office to their office in order to implement the solution. If the implementation was enterprise wide, it was common for companies to pay for a whole team to travel and stay in the same city where the company was located. </p>
<p>Cloud solutions eliminate this problem completely. It is very simple to understand why such costs are eliminated by cloud solutions - since the solution is on the cloud, there is no reason for their team to have to travel anywhere in order to perform maintenance on the solution. It is common to have a single expert present on premise who will coordinate with the rest of the team that will be working from the vendors office but as businesses are becoming more comfortable with technology implementations many are completely forgoing such travel as well. </p>
<p><span style="font-size:12pt;">GRC Implementations During the Pandemic </span></p>
<p>The recent pandemic has also significantly increased the usefulness of cloud solutions. there is no safe way to implement an on-premises solution while maintaining social distancing. However, there are no such roadblocks to implementing a cloud solution because the engineers and developers that will be implementing the cloud solution can work from home easily since everything is being done on the cloud. </p>
<p>This is also a major benefit for users of cloud solutions. The pandemic caused many businesses to shutter down because they could not ensure that everyone would be safe working from the office. Many governments across the world have also told businesses to ensure that as many employees as possible from home to stop the spread of the virus. Businesses that were using an on-premises solution for GRC suddenly found themselves in the inconvertible position of having all the right tools they would need to ensure risk and compliance were being fully managed but being unable to use those tools because they were not working from the office anymore. </p>
<p>It is also much easier for businesses to implement cloud solutions because there is no hardware required to implement a cloud solution. When an on-premises solution is being implemented the business must first by the computers, the servers, and the network hardware that will be required to make sure that the solution can work efficiently. Cloud solutions can be used from within any browser on any computer connected to the Internet, this completely eliminates the need of installing dedicated servers or natural infrastructure to use the cloud software. It is expensive to maintain the network infrastructure and hardware for businesses which is why it is important that there are no such costs attached to cloud solutions. </p>
<p>All these factors contribute to the usefulness of GRC solutions for businesses of all sizes. These solutions are easier to implement the newer and also cost lower than they have ever cost before what is the same time delivering much more value than older solutions because the technology behind them has advanced. It is also possible now for businesses to trial GRC solutions by purchasing a subscription to a cloud solution for a limited time or only purchasing a subscription for a specific tool within a full GRC solution. This is a great way to see whether the solution is right for the company and will be able to generate the return on investment the business needs. </p></div>Interview with Shub Nandi, CEO of PiChain - about his mission of making compliance sustainablehttps://globalriskcommunity.com/profiles/blogs/interview-with-shub-nandi-ceo-of-pichain-about-his-mission-of-mak2020-09-26T07:00:00.000Z2020-09-26T07:00:00.000ZBoris Agranovichhttps://globalriskcommunity.com/members/BorisAgranovich<div><p><span style="font-size:12pt;"><em>This is a transcription of our interview with Shubhradeep (Shub) Nandi, CEO of PiChain.</em></span></p>
<p><span style="font-size:12pt;">You can <a href="https://globalriskcommunity.com/video/interview-with-shub-nandi-ceo-of-pichain-regthech" target="_blank">watch</a> or listen to the interview on our Risk Management podcast here or via any podcast app.</span></p>
<p><span style="font-size:12pt;"><a href="https://globalriskcommunity.libsyn.com/shub" target="_blank"><img class="align-full" src="https://ci4.googleusercontent.com/proxy/AsUqkySeE7cDs65Yr1zWGmYzluA0rIUH6Pf-ctbdm0oD8PY8sb0C7k7qHdgBrUKXD7QveikJFEru3Bg2WBve8p2wMy2FVNbQjHkCM2Nxk2H0QWBLVRN0OzwizInUAj3uT_RE77E=s0-d-e1-ft#{{#staticFileLink}}8069434896,original{{/staticFileLink}}" alt="8069434896?profile=original" width="645" /></a></span></p>
<p><span style="font-size:12pt;"><img class="CToWUd" src="https://ci4.googleusercontent.com/proxy/MXdeKm-BKOFbBjO1UyE1rBAaAcImScm3lc9BXOmIEI4Mgbc_JwahDKuX0bN4GGAb3-hw17hbFqhol-5JoaH3GV5l0iRiIzLPOKx2I5A8NN9QfDU=s0-d-e1-ft" alt="MXdeKm-BKOFbBjO1UyE1rBAaAcImScm3lc9BXOmIEI4Mgbc_JwahDKuX0bN4GGAb3-hw17hbFqhol-5JoaH3GV5l0iRiIzLPOKx2I5A8NN9QfDU=s0-d-e1-ft" /></span></p>
<p><span style="font-size:12pt;"><strong>Boris.</strong> Welcome to the Risk Management Show. I am Boris Agranovich founder and CEO at Global Risk Community. In this episode we are talking with Shub Nandi, founder of PiChain which is a RegTech company on a mission to make compliance sustainable. It develops a deep tech system that can provide, practically learn, solve, and automate compliance problems for financial institutions using artificial intelligence and blockchain. Shub, welcome to our show today.</span></p>
<p><span style="font-size:12pt;"><a href="https://globalriskcommunity.libsyn.com/shub" target="_blank"><img class="align-left" style="padding:10px;" src="{{#staticFileLink}}8028340065,original{{/staticFileLink}}" alt="8028340065?profile=original" width="250" /></a> </span></p>
<p><span style="font-size:12pt;"><strong>Shub.</strong> Thank you so much for extending your invitation, and I'm glad that today I am in your show.</span></p>
<p><span style="font-size:12pt;"><strong>Boris</strong>. Thank you. I really appreciate your time and look forward to our conversation. Shub, could you tell us a short story of how you started PiChain and what are you guys up to these days?</span></p>
<p><span style="font-size:12pt;"><strong>Shub.</strong> Well, the goal is to primarily build an enterprise that will last a really long and have many satisfied customers, a rich investors and happy employees. So, that was the whole goal that we had as we mentioned in the entrepreneurship, but PiChain was conceived by me and my two cofounders. Our goal is a very focused, so we understand the GRC domain primarily, which is the governance risk and compliance.</span></p>
<p><span style="font-size:12pt;">And, we could see that specifically in the area of compliance, there were many gaps. So we understand that most of them evolving around the technologies like AI, machine learning, distributed technology, all of these technologies, which has great potential and can impact in a better way, the compliance industry. So coming from the background, we understand where the gaps are.</span></p>
<p><span style="font-size:12pt;">And a goal was primarily to ensure that how we can ensure this particular space, which is compliance and regulation. Can we made it more explainable, easy, and ensure that the whole process of compliance become sustainable. For us, sustainable compliance are, has got a three key attributes. So first thing is to <strong>increase the compliance confidence score all of the bank</strong>, financial institution on the FinTech that we are working with.</span></p>
<p><span style="font-size:12pt;"><strong>The next is primarily to efficiently use the regulatory capital.</strong> And number three is the most important. <strong>is just to reduce the cost of compliance</strong>.</span></p>
<p><span style="font-size:12pt;">Now, if you can do all these three things, basically to repeat this, all of these three things year on year, that means we have made something sustainable. And a sustainability is something which you want to provide to compliance. <strong>We have a ambitious goal, which is primarily to help 500 large Enterprises.</strong> to obtain sustainable compliance by the end of 2025.</span></p>
<p><span style="font-size:12pt;"><strong>Boris.</strong> What the company does a in relation to compliance specifically, what is your best type of customer and how are you different from other providers operating in the space?</span></p>
<p><span style="font-size:12pt;"><strong>Shub.</strong> Absolutely. Let me start with a bit of the challenges. We already know that there are a lot of compliance and regulatory software providers in the market.</span></p>
<p><span style="font-size:12pt;">But let us give you some statistics. <strong>The number one</strong> is that globally less than 1% of the illicit transfers are being brought to light and roughly an estimated amount of money laundered per year is roughly $US 1 trillion.</span></p>
<p><span style="font-size:12pt;">That's quite a big amount of money, <strong>number two</strong> - why do we have compliance and regulatory software? Compliance and regulatory software are a basically implanted in banks and financial institutions primarily to ensure that the whole system become a compliant and they don't face any penalties, they don't face any, any punitive actions.</span></p>
<p><span style="font-size:12pt;">But if I talk about the whole process, the regulatory fines imposed on banks, financial institution for compliance, lapses, stood at about U S 50 billion, if you start from the last meltdown till now. So hat's a huge amount of money for banks and finance institutions for which we have the data for and that's roughly $450 billion</span><span style="font-size:12pt;"> </span></p>
<p><span style="font-size:12pt;">This data is globally available, but let's get insight into one of the processes of the bank. Let's talk a bit about AML transactions or AML screening.</span></p>
<p><span style="font-size:12pt;">Banks typically handle a, roughly 1400 AML alerts on a daily basis.</span></p>
<p><span style="font-size:12pt;">Interestingly, a 97% of them are a false positive. And when I'm talking about AML alerts as a bank and talking about only one branch,. If it has multiple branches imagine how many alerts are generated? How many? 97% of them are false positives.</span></p>
<p><span style="font-size:12pt;">That means you still have to triage all these AML alerts, which is a huge number. If you are primarily triaging so many alerts, you are primarily wasting a lot of your money, a lot of you're productive resources. Which is a huge loss for the bank.</span></p>
<p><span style="font-size:12pt;">If we are going to a little bit detail. Why the penalties happen? Why even with such a large compliance teams we cannot stop money laundering.? Why we are unable to triage the right one and basically stop any form of money laundering, even fraud.</span></p>
<p><span style="font-size:12pt;">Let's talk about the day of the life of compliance officer. A compliance officer has to deal with roughly 12 IT systems to solve the single case. Unfortunately, all of this data is a different format so the person has an additional responsibility to harmonize this data. Add to this changes in regulations every six months to every two years.</span></p>
<p><span style="font-size:12pt;">They typically keep on changing the regulations to prevent organized fraud, money laundering. So they have to keep them abreast of the changes. So even for the best SME in compliance, he or she has to spend 80% of the time in gathering data, converting them into insights, seeing them they're in aligned with the regulation. And this decision has got also a lot of liability on the person.</span></p>
<p><span style="font-size:12pt;">So that's why the biggest challenge happens that banks finally, because of the shortage of manpower, even with the large teams, they go for random checking or random compliance checks. And also there are times when the deadlines are missed. So with all these challenges, we could understand because we are part of the system. And as we were part of the system, we could understand those challenges.</span></p>
<p><span style="font-size:12pt;">So we brought in the right systems. When it comes to PiChain, we built in a system called DeepPi which typically understands a compliance process like a human being, and tries to triage like a human being, but a larger scale. Understanding more data in real time and make better decisions. So that's typically the advantage that we provide and ensure that the cases are solved at a lower cost also because the systems are very robust.</span><span style="font-size:12pt;"> </span><span style="font-size:12pt;"> </span></p>
<p><span style="font-size:12pt;"><strong>The second most important thing is that we understand</strong> <strong>that if you have a legacy rule based systems which are currently present,</strong> they will generate a lot of false positives. But if you have a secondary, scoring system, it can quickly remove all those false positives and help the compliance officer to focus only on the real cases which are fraud or which are the cases of money laundering. So that's the way we provide benefit to banks, financial institutions,</span></p>
<p><span style="font-size:12pt;"><strong>Boris.</strong> In many industries COVID-19 has accelerated to the move to digital transformation as Microsoft CEO, Satya Nadella put it, “we saw two years of digital transformation in two months”. What changes are you seeing in the market, especially now in this COVID era, can you tell us how well your clients are impacted by the crisis and what organizations will need to do in order to adapt?</span></p>
<p><span style="font-size:12pt;"><strong>Shub:</strong> I think a lot of things have changed during the COVID period. Thankfully the good part was that we, never had understanding that COVID will happen, but we understood one thing very clearly. And that's the world is going forward in a digital direction. So that digital is our key methodology to solve any use case when it comes to compliance.</span></p>
<p><span style="font-size:12pt;">So let’s discuss a bit about lending rights. In lending, you typically have a lender and then there is a borrower. The lender and the borrower typically have to interact. The borrower has to come down to the lenders place to have the first interaction. So what we have done over there is to have made that part digital with our video KYC solution or a video of interaction solution. So first to consult, we do interaction solution where a lender and the borrower meet digitally.</span><span style="font-size:12pt;"> </span></p>
<p><span style="font-size:12pt;">The next part is primarily where the different documentation happens. So if the borrower provides documentation and the lender feels confidence in the borrower, they can go ahead.</span><span style="font-size:12pt;"> </span></p>
<p><span style="font-size:12pt;">The next step is primarily the KYC process where there are multiple ways the things were done today. In the India region the things were not that much digital.</span></p>
<p><span style="font-size:12pt;">What we did over here is that we ensure that the whole form KYC data, everything is digitized to have interactive forms, smart forms, advisory forms, which ensures different genre of people who are coming as a borrower can quickly fill those forms.</span></p>
<p><span style="font-size:12pt;">As a next step, we have the complete KYC process, which we have also completely automated, which means that you don't need to go to the, the lender and the borrower can meet digitally like how we are meeting over Zoom.</span></p>
<p><span style="font-size:12pt;">We have a platform which is a secure KYC platform where we have insured that the documents are stored. We also get the behavioral data and also create the risk metrics. So that's the third part to it.</span><span style="font-size:12pt;"> </span></p>
<p><span style="font-size:12pt;">After that once a person is inside the system, there has to be a set of processes, like an agreement. In India we have some people stamp papers, which legalizes this agreement.</span></p>
<p><span style="font-size:12pt;">So you have ensured that this whole journey is digital. Essentially, we have made this whole process completely digital.</span></p>
<p><span style="font-size:12pt;">Of course now the lender or the borrower can meet digitally, complete the whole process, a build a trust, and then go ahead with a finalization of, how, or what is the amount of there'll be lending or at what rates or the lending has happened and how probably the payments to be done, buy the borrower.</span></p>
<p><span style="font-size:12pt;">So, that's the one of the use cases like this. What we understand yet is that COVID has accelerated digitization, and we have built a system end to end into the digital space and we're seeing a lot of interest into our product, both in India and the European region.</span></p>
<p><span style="font-size:12pt;">So COVID is an unfortunate event which, is not at all good for the humanity, but from a business perspective, what we are seeing is that people are becoming more smarter.</span></p>
<p><span style="font-size:12pt;">They're going digital, and that's where our solutions are impacting and helping them to make a completely digital and still run their business during this very tough times.</span></p>
<p><span style="font-size:12pt;"><strong>Boris:</strong> I'd like to ask you a personal opinion. What is so fascinating for you about financial compliance and what is a commonly held belief as it relates to compliance that you actually disagree with?</span><span style="font-size:12pt;"> </span><span style="font-size:12pt;"> </span></p>
<p><span style="font-size:12pt;"><strong>Shub:</strong> When I talked to many people, we understand that whatever you do compliance is considered as a black box. So that's something which we fortunately with a new system and technology in place we say that this is no more the truth.</span></p>
<p><span style="font-size:12pt;">If you have deployed all the right systems in place, compliance is no more a black box. It can be made explainable. And the reason we also want to tell people that there is no more need of doing random compliance checks.</span></p>
<p><span style="font-size:12pt;">You can totally do the compliance checks from end to end and your compliance checks are not directly proportional to the size of your compliance teams. So this is one of the biggest myths, which is there and which we are trying to change and take the whole journey of GRC ahead.</span></p>
<p><span style="font-size:12pt;"><strong>Boris</strong> Your personal opinion is very interesting, and why you're a busy with this area of expertise. I wonder what tips do you have for compliance managers to help the organizations to stay on course during this crisis, for example, what's something that they should start doing right now that they are not doing currently, or perhaps another way around- what they should stop doing right now, what they are doing currently.</span></p>
<p><span style="font-size:12pt;"><strong>Shub:</strong> Well, I think one of the key things here is that compliance officers have a process in place which includes going to a multiple systems and spending a lot of time with multiple different systems, getting the data and then making decisions.</span></p>
<p><span style="font-size:12pt;">I think compliance officers, are the best people to make decisions because they have the whole knowledge experience of a particular case. Now, what they can do over here is instead of spending time on gathering this information, they can probably take help of technology to help gather the information and also augment them with insights.</span></p>
<p><span style="font-size:12pt;">So if we just talked about a screening perspective, you don't need to have a system where you probably do an AML PEP screening, and you just put in that name and then you have to navigate to 15 different pages to find out whether this is the right person or not.</span><span style="font-size:12pt;"> </span></p>
<p><span style="font-size:12pt;">In those cases, a lot of time is get wasted. That's where probably a compliance officer can bring in some of the advanced technologies, which are available in the market and augment himself or herself with those newer technologies, <strong>and then do best part</strong> at what he or she is, which is making decisions that can never be taken, taken up by an AI or any of that one solutions that could definitely come from human beings.</span></p>
<p><span style="font-size:12pt;">But technology is going to provide support to the decision points.</span></p>
<p><span style="font-size:12pt;">Here we will have two benefits. First, they will have a peaceful day because they will save a lot of the time and also ensure that the thing is correct.</span></p>
<p><span style="font-size:12pt;">Second, a lot of times they'll have enough time for the friends and family. And, probably that would help them to have a better work life balance.</span></p>
<p><span style="font-size:12pt;"><strong>Boris:</strong> So looking broadly in your industry, what are the biggest challenges in future trends, in AML and compliance and what should we expect from you guys in the future?</span></p>
<p><span style="font-size:12pt;"><strong>Shub:</strong> I think that here is that what we did in the beginning of 2019, right? We surveyed a hundred compliance officers who are primarily in the job of ensuring that their organizations are compliant. So we understood that there are three challenges, which are definitely going to stay.</span></p>
<p><span style="font-size:12pt;">One is the regulations will be different in different geographies and for the chief compliance officer of an organization that's one of the major challenge because every geography will have changes in different regulations. So they have to keep on getting adapted to that. So that would be one challenge.</span></p>
<p><span style="font-size:12pt;">The second would be the organized financial, fraud which will definitely become smarter day by day. And with today, everything becoming digital, you would see a mix of smart cyber fraudsters. So you have to stay ahead of them in the game.</span><span style="font-size:12pt;"> </span><span style="font-size:12pt;"> </span></p>
<p><span style="font-size:12pt;">And of course, they have to take care of the cost of compliance,. So that the cost of compliance did not go higher and will get whole organization's compliant.</span></p>
<p><span style="font-size:12pt;">So we see this three areas which primary going to keep on changing. And we understand that only smarter systems can tackle these areas. For example, how can we stay ahead of the fraudster? So you need to think like a fraudster and then understand how we can prevent it. So you need to have those kinds of systems, which are smarter cognitively and probably think like a human being and helps the human being to make better decisions.</span></p>
<p><span style="font-size:12pt;">So those are the areas we are going to focus on and we'll keep on investing. So a lot of our investment goes into research and development for more resilient systems.</span></p>
<p><span style="font-size:12pt;"><strong>Boris:</strong> Fantastic. So to summarize, if someone who is listening to this Interview would like to walk away with one or two major takeaways, what would that be?</span></p>
<p><span style="font-size:12pt;"><strong>Shub:</strong> Well, I think I, I have given it all, I think the first thing is that let's start believing in technology and understand that the new normal is the digitalization. So we need to start adopting it a quicker and faster. The next most important thing is that lets try to go back and see what are the set of activities we are doing.</span></p>
<p><span style="font-size:12pt;">If some of the activities are repetitive in nature and probably causing a lot of stress in our daily lives, probably we can offload them to a system.</span><span style="font-size:12pt;"> </span></p>
<p><span style="font-size:12pt;">I think that third, most important thing is that you have to be always in a state of curiosity. Initially in my career, I didn't start as a person in the compliance, but , I quickly started learning, because I had a very big curiosity around this.</span><span style="font-size:12pt;"> </span><span style="font-size:12pt;"> </span></p>
<p><span style="font-size:12pt;">So curiosity in compliance and curiosity in technology is something which I see one of the key behaviors, if you have, you're definitely going to learn new things and also master them slowly.</span></p>
<p><span style="font-size:12pt;"><strong>Boris:</strong> Well, thank you very much for your Interview. I think it was very informative and very useful for our members. And I wish you a company, PiChain, very, high growth and reaching your goal of 500 customers in a few years. Hopefully we'll hear from you in the future.</span></p>
<p><span style="font-size:12pt;"><strong>Shub:</strong> Absolutely. Thank you so much for is a, I mean, I'm glad that you invited me and we had this wonderful discussion. Thank you so much.</span></p>
<p><span style="font-size:12pt;"> </span></p>
<p><span style="font-size:12pt;"> </span></p></div>Interview with Anastasia Dokuchaeva from ClauseMatchhttps://globalriskcommunity.com/profiles/blogs/interview-with-anastasia-dokucaeva-from-clausematch2020-07-18T05:42:23.000Z2020-07-18T05:42:23.000ZBoris Agranovichhttps://globalriskcommunity.com/members/BorisAgranovich<div><p><span style="font-size:12pt;"><strong>This is a transcript of our interview with Anastasia Dokuchaeva, Head of Partnerships at ClauseMatch.</strong></span></p>
<p><span style="font-size:12pt;"><strong>You can watch the original video interview <a href="https://globalriskcommunity.com/video/interview-with-anastasia-dokucaeva-from-clausematch" target="_blank">here</a></strong></span></p>
<p> </p>
<p><span style="font-size:12pt;"><a href="https://globalriskcommunity.com/video/interview-with-anastasia-dokucaeva-from-clausematch" target="_blank"><img class="align-left" style="padding:5px;" src="{{#staticFileLink}}8028326477,original{{/staticFileLink}}" alt="8028326477?profile=original" width="350" /></a></span></p>
<p><span style="font-size:12pt;"><strong>Boris:</strong> Hello ladies and gentlemen and welcome to our interview with Anastasia Dokuchaeva. Anastasia is Head of partnerships at ClauseMatch, a regulatory technology firm which provides financial institutions, insurance, energy companies as well as the regulators with the modern compliance platform to transform the policy management and regulatory change management processes. Anastasia, thank you for taking your time and coming to our interview today.</span></p>
<p><span style="font-size:12pt;"> </span></p>
<p><span style="font-size:12pt;"><strong>Anastasia:</strong> Hi Boris, thank you so much for having me.</span></p>
<p><span style="font-size:12pt;"> </span></p>
<p><span style="font-size:12pt;"><strong>Boris:</strong> This is our second interview with ClauseMatch. We had the first one a few weeks ago with your CEO & founder Evgeny Likhoded. We saw high engagement and decided to invite you guys for the second one. Today we will take a deep dive into the US vs. Europe’s way of adopting new innovative technology for risk and compliance. Anastasia, for those viewers or listeners who didn’t watch our first interview, can you tell us a little bit about what you and your team at ClauseMatch are up to these days?</span></p>
<p><span style="font-size:12pt;"><strong>Anastasia:</strong> Absolutely, so ClauseMatch is a regulatory technology company that specializes in automating policy management and regulatory change management. We work with global financial institutions and other regulated firms to help them to address challenges around those areas. Over the last few months what we’ve really been focusing on is having a company of looking into the North American territory and working with clients in the US and Canada and really launching our solution and platform in those regions.</span></p>
<p><span style="font-size:12pt;"><strong>Boris:</strong> Ok, so if I understand correctly your company is entering the US market to serve it in the policy management and the regulatory change management space. Congratulations on that! You also recently participated in the virtual Fintech Innovation Lab in New York, can you perhaps share your experience with this program and your perspective on the US market?</span></p>
<p><span style="font-size:12pt;"><strong>Anastasia:</strong> That’s absolutely correct. So, in the beginning of the year we had a very clear plan and understanding that our solution has a perfect market fit in the US. And as a part of that we entered the New York <strong>Fintech Innovation</strong> Lab run by Accenture and the Partnership fund for New York, where we were mentored by global financial institutions and this allowed us to really validate what we felt was indeed the case of that product market fit. And we really found incredible adoption and excitement around our solution in the market. And as a consequence of that recently in the last few weeks we have announced that we launched an office and now have a representation on the ground in North America, we’re working with the existing and new clients in the New York and the greater US area.</span></p>
<p><span style="font-size:12pt;"><strong>Boris:</strong> Fantastic! So, let’s dive straight into your perspective on what makes the new compliance normal in the US. What are the specifics of Europe vs. US in adopting new technologies in the RegTech space?</span></p>
<p><span style="font-size:12pt;"><strong>Anastasia:</strong> It’s a very interesting topic. So, what we find in general when we work with financial services firms, obviously after the crisis there have been heavy regulatory changes and enforcements applied to that specific industry. But interestingly, when I’m talking about the regions, and we are based our headquarters in the UK and this is where I’m based, we are very used to the principles based, outcome-based regulations so therefore such topics as conduct, culture, governance are very normal to us when we have conversations around policy managements and governments management.</span><span style="font-size:12pt;"> </span></p>
<p><span style="font-size:12pt;">Going into the US we see a really interesting dynamic or a perspective. There is a much more rules-based regulation, ticking the box kind of exercises. But at the same time, it is the complexity: how many regulators are part of the ecosystem and the regulatory framework in the US! That’s an interesting dynamic to see, when it comes to the technology perspective and the adoption of regulatory technology as a consequence.</span><span style="font-size:12pt;"> </span></p>
<p><span style="font-size:12pt;">And a lot of the regulatory technology that I see in the US, is about those rules-based solutions. There are very heavy regulatory reporting requirements and solutions around that. But with that said, very recently Department of Justice has issued this statement in a letter talking about how actually besides all of the different requirements that financial services have in the US, they are recognizing the need of culture, conduct, governance and more importantly a holistic approach to policy management, compliance management so that an organization must embrace a holistic view and structure the process around it.</span></p>
<p><span style="font-size:12pt;">So, we are in a way in the right place at the right time because solutions such as ClauseMatch I think will find a really interesting application in the US market.</span></p>
<p><span style="font-size:12pt;"><strong>Boris:</strong> Interesting, so do firms in the US adopt regulatory technology faster? Why?</span></p>
<p><span style="font-size:12pt;"><strong>Anastasia:</strong> I think so, I do feel that in a way and the experience from the Lab we just went through shows that as well. There is a very clear understanding of the need for policy management in the US and I do feel that they are able to perhaps act on it and make decisions much quicker than what I personally saw here in Europe. So, it’s definitely an interesting dynamic or difference between the two territories.</span></p>
<p><span style="font-size:12pt;"><strong>Boris:</strong> And why do you think it is the right time now to enter the US market?</span><span style="font-size:12pt;"> </span></p>
<p><span style="font-size:12pt;"><strong>Anastasia:</strong> Because of this understanding by the US regulators of the importance for the companies to have good culture, good governance processes, because they’re actively looking at addressing those issues and really bring it to the forefront of senior managers in organizations.</span></p>
<p><span style="font-size:12pt;"><strong>Boris:</strong> So, what do the US regulators pay attention to in the review process?</span></p>
<p><span style="font-size:12pt;"><strong>Anastasia:</strong> I think what they’re looking to do is to see transparency around how companies conduct themselves. I also think they will expect accountability by senior management in general, leadership of the organizations. So, transparency, accountability and efficiency, being actually efficient at what they put in place and how they use the technology to really streamline the processes in business. And I think that’s what the regulators will expect from them.</span></p>
<p><span style="font-size:12pt;"><strong>Boris:</strong> So, I understand that with current remote working situation your solution is probably experiencing high demand. Is that something you see on the market?</span></p>
<p><span style="font-size:12pt;"> <strong>Anastasia:</strong> Absolutely, you just really hit the nail on the head if I’m honest. With Covid and with this trend for remote working or necessity to do remote working, it’s really interesting to experience that organizations still have to maintain business continuity.</span><span style="font-size:12pt;"> </span></p>
<p><span style="font-size:12pt;">They still need to make sure that they are complying with regulatory requirements and that means that they also need to adapt to those changes quite quickly. The challenge was that they are no longer in the same office being able to review and rewrite those processes and procedures and also communicate this to all of the employees across all the different locations they’re in.</span></p>
<p><span style="font-size:12pt;">So, having tools such as ClauseMatch that allows for real-time collaboration, communication, remote working but also has the precise audit trail. I think that will be a trend. We really saw some amazing feedback from our existing clients around how they felt they were ready for this situation and it doesn’t disrupt their day-to-day activities even though they were now working remotely.</span></p>
<p><span style="font-size:12pt;"><strong>Boris:</strong> So with your tool, if somebody updates one sentence in documents, it just propagates to everyone. So, there is no need to go back and forth with it, right?</span></p>
<p><span style="font-size:12pt;"><strong>Anastasia:</strong> Yes, you’re right. It’s the ability to work on a piece of content, a document in our case, it’s the ability to work on a document collaboratively with multiple stakeholders. And you can ensure that the document goes to the proper review and approval cycle so that it’s actually validated, approved sent off before it’s communicated and implemented in the firm.</span></p>
<p><span style="font-size:12pt;"><strong>Boris:</strong> Ok, I have a question. If someone who is listening to this interview would like to walk away from this with one or two major take-aways. What would it be?</span><span style="font-size:12pt;"> </span></p>
<p><span style="font-size:12pt;"> <strong>Anastasia:</strong> That’s a great question. So, I would say: what is the new normal for your organization? How are you looking to continue working after we get out of this lockdown?</span></p>
<p><span style="font-size:12pt;">Think of technology that will enable you to work efficiently, to have the transparency and to be able to capture that transparency even though people might be located in different places. Think of technology not as a magic bullet but as a tool that can help you make things easier and reduce some of the administrative work that employees probably don’t want to do.</span></p>
<p><span style="font-size:12pt;"><strong>Boris:</strong> Ok, thank you Anastasia for your interview and I wish you and your company ClauseMatch great success in expanding and growing your business and helping your customers in this difficult time.</span></p>
<p><span style="font-size:12pt;"><strong>Anastasia:</strong> Thank you Boris, it has been a pleasure to speak to you. Enjoy the rest of your day.</span></p>
<p><span style="font-size:12pt;"> </span></p></div>Webinar: 7 Steps to Perfecting Your Compliance Managementhttps://globalriskcommunity.com/profiles/blogs/webinar-7-steps-to-perfecting-your-compliance-management2020-04-01T08:02:48.000Z2020-04-01T08:02:48.000Zvicky daleyhttps://globalriskcommunity.com/members/vickydaley<div><p><span><a href="{{#staticFileLink}}8028316652,original{{/staticFileLink}}" target="_blank"><img src="{{#staticFileLink}}8028316652,original{{/staticFileLink}}" class="align-center" alt="8028316652?profile=original" /></a></span></p><p></p><p><span>Keeping up-to-date with legal changes across multiple jurisdictions and international boundaries is a challenge for every business. This on-demand webinar explores how to keep track of only the regulations that matter to your business, and how to ensure individual sites remain compliant.</span></p><div><span>Watch the webinar <a href="https://info.libryo.com/7-steps-to-perfecting-your-compliance-management" target="_blank">here</a>:</span></div><p>In this webinar, in partnership with IsoMetrix, you will learn:</p><ul><li><span>7 steps to perfecting compliance management across a multi-jurisdictional environment</span></li><li><span>How to link risk and consequence to site-specific laws</span></li><li><span>How global companies prepare for EHS audits to avoid fines and boost the bottom line</span></li><li><span>Real results from a case study: How one leading multinational, agriculture, mining and chemicals company manages 687 laws across 44 of their operational sites globally</span></li></ul><div><strong><a href="https://info.libryo.com/7-steps-to-perfecting-your-compliance-management" target="_blank">Complete the form here</a> to watch the webinar now.</strong></div></div>Sanctions and AML: a practitioner’s view of getting to grips with new directiveshttps://globalriskcommunity.com/profiles/blogs/sanctions-and-aml-a-practitioner-s-view-of-getting-to-grips-wit-22020-02-25T12:28:12.000Z2020-02-25T12:28:12.000ZCheri Burnshttps://globalriskcommunity.com/members/CheriBurns<div><div class="et_pb_module et_pb_text et_pb_text_0 et_pb_text_align_left et_pb_bg_layout_light"><div class="et_pb_text_inner"><p>Following A deep dive into how businesses can ensure they keep up with<span> </span><a href="https://www.encompasscorporation.com/blog/how-ipa-support-robust-sanctions-compliance/">evolving sanctions regimes</a> with<span> </span><a href="https://www.encompasscorporation.com/blog/aml-and-sanctions-how-firms-can-keep-up-with-evolving-regimes/">Martha Kliss from UCB,</a><span> </span>a global organisation within the pharmaceutical industry, we’re continuing to examine the landscape – this time with a practitioner’s views and insight into implementing Anti-Money Laundering (AML) directives.</p><p>Olivia Tawadros is a Senior Analyst at UAE’s Financial Intelligence Unit (FIU), who was a key figure in the implementation of the goAML reporting platform, developed by the United Nations Office on Drugs and Crime (UNODC) to facilitate the receipt, analysis and dissemination of suspicious transactions and activity reports to the UAE’s authorities.</p></div></div><div class="et_pb_module et_pb_text et_pb_text_1 et_pb_text_align_left et_pb_bg_layout_light"><div class="et_pb_text_inner"><p>Here, she tells us more about what she’s learned through that role, in terms of best practice for financial institutions (FIs) when it comes to<span> </span><a href="https://www.encompasscorporation.com/blog/aml-in-2020-an-australian-perspective/">tackling money laundering</a>, and how the increasing compliance requirements in the region have impacted…</p></div></div><div class="et_pb_module et_pb_text et_pb_text_2 et_pb_text_align_left et_pb_bg_layout_light"><div class="et_pb_text_inner"><h4>Olivia’s view*</h4><h4>What are some of the lessons you learned along the way that you think would be useful for FIUs and financial institutions to know about when preparing for the introduction of revised AML directives?</h4><p>It is always best to be prepared and know your requirements in advance prior to starting an implementation process.</p><p>Ensure that the infrastructure is adequate. Get to know the platform you’re using, listen to experienced users and make the best use of it. It’s important to have proper policies, procedures and controls – complemented by technology – in place.</p><p>One of the key things to consider, especially with the new requirements of regulations<span> </span><a href="https://www.encompasscorporation.com/encompass-webinars/understanding-5mld/">such as the Fifth Money Laundering Directive (5MLD)</a><span> </span>is to ensure staff are up-skilled – this is extremely important. Particularly in relation to 5MLD, we know staff must be comfortable with the requirements concerning Ultimate Beneficial Owners [UBOs], so I think this is an area that must be taken into account, as I find that financial institutions lack training from the bottom up in this area.</p><h4>What are your tips for financial institutions and non-traditional financial institutions to get aligned internally for new directives?</h4><ul><li><b>Adopt<span> </span></b><span>a comprehensive AML programme, particularly if you are a</span><span> </span><span>non-traditional institution, like a Cryptocurrencies exchange. </span></li><li><b>Tighten<span> </span></b><span>existing</span><span> </span><span>transaction monitoring rules </span><b>(</b><span>specifically in relation with prepaid card top up transactions</span><b>)</b><span>.</span></li><li><b>Understand<span> </span></b><span><a href="https://www.encompasscorporation.com/blog/the-role-of-automation-in-risk-analysis/">your risk appetite</a> in relation to transactions that involve high value goods</span><span> </span><span>that could be a source for terrorism financing</span><span> </span></li><li><span> </span><b>Upskill<span> </span></b><span>the financial crime detection and compliance teams and train them on how to unwrap complex structures and links between entities and UBOs.</span></li><li><b>Apply<span> </span></b><span>analytics tools to manage the wealth of information that is publicly available for your client due diligence. </span></li><li><b>Carry out</b><span> </span>Enhanced Due Diligence (EDD) on those concerned in high risk third countries, as defined in 5MLD</li></ul><h4>What are some of the issues you tend to see around AML adherence in the complex structures?</h4><p>Complex structures are a key method used to<span> </span><a href="https://www.encompasscorporation.com/blog/the-full-picture-automating-ubo-discovery-for-private-equity-firms/">disguise beneficial ownership</a>. These involve the use of legal persons and arrangements to distance the beneficial owner from an asset through complex chains of ownership.</p><p><span>Key issues related to complex structures include:</span></p><ul><li><span>Deficiencies in on-boarding and ongoing CDD programmes</span></li><li><span>Companies not maintaining shareholders registers</span></li><li><span>Transparency issues related to these registries</span></li><li><span>Complicated mechanisms in sharing financial intelligence and company information between authorities</span></li></ul><p>There is also the difficulty that comes with dealing with dormant accounts, IDV and complex structure unwrapping.</p><h4>What are some of the important measures for complying with AML due diligence requirements?</h4><p><span>Customer Due Diligence (CDD) measures and controls, whether at onboarding or throughout the course of the relationship, are an effective risk mitigation tool. </span></p><p><span>Measures include</span></p><p><span>Identifying the Ultimate Beneficial Owner (UBO)</span></p><ul><li><span>Identify and verify the identity of each customer on a timely basis.</span></li><li><span>Identify the beneficial owner, and take reasonable measures to verify the identity of any beneficial owner. The measures that have to be taken to verify the identity of the beneficial owner will vary depending on the risk.</span></li><li><span>Obtain appropriate additional information to understand the customer’s circumstances and business, including the expected nature and level of transactions.</span></li><li><span>Relevant customer due diligence information should be periodically updated together with its risk assessment. In the event of any change in beneficial ownership or control of the applicant, or third parties on whose behalf the applicant acts, reasonable measures should be taken to verify identity.</span></li></ul><h4>What do you think of the move towards UBO registries in Europe? How do you think that these registries should be used by companies in their due diligence process when they onboard clients and/or suppliers?</h4><p>As per<span> </span><a href="https://www.encompasscorporation.com/blog/identifying-ubos-robotic-process-automation/">the Financial Action Task Force (FATF) guidance</a><span> </span>on transparency and beneficial ownership, countries require their company registry to facilitate timely access to the public information they hold – hence the move towards UBOs registries in Europe.</p><p>Financial institutions should not solely rely on such registries to identify UBOs but rather should use them as a starting point. They should follow an enhanced due diligence process, especially with clients who are identified to have complex structures.</p><p>Unwrapping the layers of a complex structure and Identifying and verifying the UBOs should not only be done at the onboarding stage but rather should be part of their periodic reviews to ensure they’re compliant with the relevant regulations as well as up to date with their Know Your Customer (KYC) activities.</p><h4>What is the role or benefit of having a verifiable audit trail for financial institutions if a potential compliance breach is identified?</h4><p>The importance of having a verifiable audit trail is the first lesson I personally learnt when I started my AML career. It is vital that an institution has documents to cover itself, which means that every decision should be properly documented.</p><h4>How do institutions benefit from showing a consistent process when AML compliance is questioned?</h4><p>Consistency is key. It is important to be able to exhibit a consistent approach to AML compliance. It can be used to sustain an institution’s defence, should there be a one-off incident that causes the AML compliance program to be in question.</p><h4>What do you think are useful ways to harness technology for AML?</h4><p><b>Transaction Monitoring:<span> </span></b>A good transaction monitoring system will help FIs in detecting any red flags or patterns that can be a sign of exploiting trusts, complex structures, and PIVs in potential money laundering schemes. Introducing machine learning and Artificial Intelligence (AI) is now the trend and, if exploited for the right cause, it can be cost-effective.</p><p><b>Suspicious Transaction Reporting:<span> </span></b>Most FIUs are now using advanced systems to receive, analyse and disseminate STRs/SARs. Using machine learning and AI as well can help FIUs during their investigations and strategic analysis process.</p><p><span>I think financial institutions should become more proactive with technology. Being proactive does not mean file more STRs/SARs, but rather take the initiative of using available technology for preempting risks by detecting trends and patterns to then design a mechanism for sharing them with the institution’s community for everyone’s benefit.</span></p><h4>How can technology be used to make the relationship between FIs and FIUs collaborative?</h4><p>FIUs and financial institutions are increasingly working together in regulatory sandboxes, allowing banks to innovate, with the regulator’s guidance, and supportive oversight.</p><h4>What do you think of the potential of technology for improving SAR submissions and subsequent FIU investigations? How does this change the relationship between financial institutions and FIUs?</h4><p>Financial institutions that are eager to cover themselves by complying with suspicious transaction reporting directives have the counterintuitive effect of making it harder for FIUs to pursue legitimate financial crime due to the sheer SAR volume.</p><p>Institutions that undertake client vetting aided by technology approaches like Intelligent Process Automation (IPA) reduce the amount of clients that SARs come from in the first place. Applying AI in transaction monitoring once the client<span> </span><a href="https://www.encompasscorporation.com/blog/encompass-survey-kyc-onboarding-challenges/">passes onboarding checks</a><span> </span>significantly reduces false positives and the SAR workloads at FIUs.</p><p>Institutions sending less erroneous SARs gives FIUs the time and capacity to chase up legitimate SARs and meet their respective financial crime fighting missions. Consequently, a collaborative workflow develops, with institutions sending more qualified SARs, allowing FIUs to focus on SARs that are more likely linked to financial crime.</p><p>This is an example of technology changing the relationship between financial institutions and FIU from potentially adversarial to collaborative.</p><p>*The views expressed in this blog are Olivia’s, and are not representative of her employer.</p></div></div></div>How to link your legal requirements to your risk assessment?https://globalriskcommunity.com/profiles/blogs/how-to-link-your-legal-requirements-to-your-risk-assessment2020-01-13T10:41:12.000Z2020-01-13T10:41:12.000Zvicky daleyhttps://globalriskcommunity.com/members/vickydaley<div><p>Learn about the importance of risk assessments and how the process of linking your legal requirements can bring a whole host of benefits.</p><h3><span><strong>What is a risk assessment?</strong></span></h3><p>A risk assessment is a process in which an employer, or someone competent appointed by an employer, will identify any hazards and evaluate the associated risks within a workplace. This type of risk assessment can be referred to as a HIRA (Hazard Identification and Risk Assessment). </p><p>In many countries around the world, such as in South Africa and the United Kingdom, this type of risk assessment is a<span> </span><span><a href="https://blog.libryo.com/legal-registers-filtering-out-regulation-relevant-to-somebody-elses-job">legal requirement</a></span><span> </span>for employers to ensure the health and safety of their employees. When identifying hazards on site, it is helpful to break them down into broader categories. </p><p>Examples of some hazard identification categories are:</p><ul><li>Mechanical Hazards</li><li>Non-Mechanical Hazards</li><li>Chemical Hazards</li><li>Physical Hazards</li></ul><p>Another type of risk assessment that can be done, is to assess the various aspects of a business that can impact the environment. These are often referred to as AIR’s (Aspect and Impact Registers). </p><p>Environmental impacts can then be broken down into different categories:</p><ul><li>Air pollution</li><li>Water Pollution</li><li>Ground/land pollution</li><li>Biodiversity</li><li>Social Impacts</li><li>Heritage</li><li>Visual Impacts</li></ul><p>You can also conduct various other risk assessments per legal domain such as Information Systems, Quality and Food Safety. </p><p></p><h3><span><strong>Why are risk assessments important?</strong></span></h3><p>Having a documented risk assessment is required by law for any employer. Further to this, being able to identify potential hazards based on the activities within a business is the first step in being able to put control measures in place to avoid any disasters from happening. If there is an incident that occurs on site, one of the first things that the department will ask is if a risk assessment has been done.</p><p>It can end up being a costly lesson to learn for businesses if they have not conducted a risk assessment, or have failed to put the correct controls in place to mitigate risks. This lesson could be in the form of a fine/penalty, an action lawsuit that could lead to imprisonment, reputational damage, equipment damage, and can even deter future employees from wanting to work for your business.</p><h3><span><strong>Stage 1: Understand your consequences</strong></span></h3><p>Find out what the consequences of non-compliance are in relation to your applicable legal requirements. Solutions like<span> </span><span><a href="https://libryo.com/" target="_blank">Libryo</a></span><span> </span>can do this quickly for you, saving the process of trawling through legislation. </p><p></p><p>Once you’ve identified the potential risks within your business, how do you know what control measures you need to put in place to avoid these risks from occurring?</p><h3><span><strong>Stage 2: Link your risk assessment to your legal requirements </strong></span></h3><p>The next step in determining what control measures you should put in place to avoid operational risks from occurring, is to determine what is required by law. Linking your legal requirements to your operational risks is critical in demonstrating that you understand what steps to take by understanding the context of your business.</p><p>If your company is certified by a management system standard<span> </span><span><a href="https://blog.libryo.com/iso-9001-2015-legal-requirements">such as ISO</a></span>, to maintain your certification you will be required to link your operational risks to your legal risks. This can be an extremely lengthy process, especially if there are multiple sections that can apply to an identified risk, impact or threat.</p><h3><span><strong>How Libryo helps you link your risk assessments</strong></span></h3><p>Here are some of the ways you can use Libryo to help with the process of linking your legal requirements to your risk assessment:</p><ul><li><strong>Updated legal register</strong></li></ul><p>The manual process of linking your legal requirements to your operational risks can be extremely time consuming. By linking your risk assessment to your online legal register on Libryo, you can ensure that your legislation will automatically remain up-to-date and include all of the relevant changes. This is a huge time saver if you consider how long it would take to manually update the links to the law in your risk assessment, every time a change in law happens.</p><ul><li><strong>Search</strong></li></ul><p>Libryo’s<span> </span><span><a href="https://libryo.com/legal-registers/">custom legal registers</a></span><span> </span>are structured in such a way that the law is tagged by different topics. These topics will show the different sections of law that apply to a particular area, matter, function, etc. </p><p>These topics are extremely helpful when linking your operational risks to the identified legal requirements as they will display all the relevant sections of law that apply on one page. For example, if you have identified all of the environmental impacts that could cause air pollution, simply make use of Libryo search, type in “Air Pollution” and click on the topic result.</p><p></p><p>This will display all applicable legislation dealing with air pollution. You can then copy and paste the URL into your excel document to demonstrate the link to the law.</p><p>Not only is the Libryo topic search a huge time saver but it groups all of your relevant legal requirements into one place for ease of reference.</p><p></p><ul><li><strong>Documents</strong></li></ul><p>Libryo’s documents module gives you the ability to upload your legally required compliance documents in one central location. These documents can then be accessed by the rest of your team who also have access to Libryo. You can store your risk assessments on Libryo in their own folder which makes it easy for an auditor to see everything in one place.</p><ul><li><strong>Professional Services</strong></li></ul><p>Libryo professional services can help you link your legal requirements to your risk assessment using our fast and efficient linking tool. If your risk assessments are done in excel we can help you in just a few simple steps.</p><p> </p><p>To learn more about Libryo’s features and custom legal registers<span> </span><span><a href="https://info.libryo.com/brochure">download the brochure.</a></span></p></div>Regulatory Change Management Lessons From change Managementhttps://globalriskcommunity.com/profiles/blogs/regulatory-change-management-lessons-from-change-management2019-12-27T10:48:53.000Z2019-12-27T10:48:53.000ZChristine Thomashttps://globalriskcommunity.com/members/ChristineThomas360factors<div><p><span>While regulatory </span><span>change</span><span> </span><span>management</span><span> and enterprise change management may be different domains, there is a lot that regulatory change managers can learn from enterprise change management. The basics of both remain the same, even if regulatory change is a bit more complicated to manage. </span><span> </span></p><p></p><p><span style="font-size:14pt;">Identify the nature of change </span></p><p><span>In addition to failures related to lack of support, 70% of change projects fail because they are not managed with an adapted approach. In other words, </span><span>we</span><span> often think that all change projects are the same and can be done in the same way, but that is far from the case.</span><span> </span></p><p><span>Indeed, each change must be treated in a personalized way according to its nature and the populations impacted, because, by definition, the change is frightening and creates frustration. The evolution of mentalities and behaviors is a complex task. Indeed, any change within an organization impacts </span><span>the employees</span><span>. Without involving them, and without knowing the levers to help them accept the change, it is very difficult to make </span><span>this</span><span> project a success. </span><span> </span></p><p><span>The same goes for </span><a href="https://www.360factors.com/blog/understanding-regulatory-change-management/"><span>regulatory changes</span></a><span>. It is important to look at the human aspect of things and make sure that employees understand the changes required and why they are required.</span><span> </span></p><p></p><p><span style="font-size:14pt;">Build an action plan </span></p><p><span>Given their complexity, it is common to encounter difficulties to support change </span><span>projects.</span><span> Unfortunately, the means used are often not / or not very effective because they do not manage change as a </span><span>problem</span><span>. Regularly, no action plan is put in place, scattered actions are launched throughout the project.</span><span> </span></p><p><span>This makes the involvement of stakeholders very difficult in the long term, especially in a context of change that is often experienced as a very important transformation of everyday life. You </span><span>must</span><span> build a plan, set goals, and of course evaluate the effectiveness of the actions as you go.</span><span> </span></p><p><span>Another key point to not miss out on its change: do not limit yourself to </span><span>spreading </span><span>information. We have seen on many projects a common misconception: if people know, they will automatically change. The information is necessary, but not </span><span>enough</span><span>.</span><span> </span></p><p><span>Accompaniment makes it possible to involve the targets, to mobilize them, by making them actors of the transformation. For example, for a tool change, a user technical documentation is sometimes considered as an accompanying support</span><span>, even though it doesn’t provide much help. </span><span>It is therefore more important to privilege, questions / answers sessions, workshops, communities ... More interactive media that allow people to express themselves, participate, co-build and project into a future that makes you want.</span><span> </span></p><p><span>Finally, a major element is the implementation of a personalized approach concerning the different stakeholders. This will result from a reliable stakeholder analysis that is precise enough to release the power of influence of each identified "population". The sponsor, for example, is the one who is convinced. He then carries the project throughout his life cycle and will have enough influence to get </span><span>others to accept the future. Then you </span><span>must</span><span> be able to give the users a clear vision of what will change and not leave them in limbo.</span><span> </span></p><p><span>You cannot simply tell people about the regulatory changes that are coming up – you need to make sure they truly understand it by talking to them, providing training, and making sure you are there to answer any questions they may have.</span><span> </span></p><p></p><p><span style="font-size:14pt;">Make lasting changes to behaviors </span></p><p><span>First and foremost, it was important to change the behavior of individuals, aware that their attitude is not, or no longer, the right one. For illustration, all employees </span><span>understood</span><span> it was essential to have a complex password, however this rule was applied very little. </span><span> </span></p><p><span>Businesses also need to make sure that they make lasting changes. This doesn’t simply mean that they should tell the employees to make lasting changes, but that businesses should look at the way they handle regulatory change management and look at where they can make improvements. Some businesses may opt to change the processes that guide RCM, while others may choose to invest in a regulatory change management solution. It is important to create some sort of permanent change to the organization.</span><span> </span></p><p><span>That is one of the biggest mistakes </span><span>the </span><span>management can make – focusing on short term change. It is easy to change the way people behave for a short period of </span><span>time</span><span>. You just need to increase scrutiny and remind everyone about the changes required and they will act </span><span>differently</span><span>.</span><span> However, they will soon go back to working the way they have always worked, which is why it is important that we look at the way people behave and see how we can </span><span>change their ways permanently. Maybe the answer is in providing them with the right tools, maybe we need to introduce better controls, or maybe management itself needs to take a more active role in the change management process.</span><span> </span></p></div>Combating Financial Crime for FinTechshttps://globalriskcommunity.com/profiles/blogs/combating-financial-crime-for-fintechs2019-11-21T12:30:00.000Z2019-11-21T12:30:00.000ZAdam Holdenhttps://globalriskcommunity.com/members/AdamHolden<div><p><span style="font-weight:400;font-size:14pt;">For me, founding NorthRow wasn’t just about the business opportunity, but a chance to make a difference to the devastating effects that fraud and other forms of financial crime can have on individuals and companies.</span></p><p><em>Witnessing the corrosive effect of fraud on a family business was a key inspiration and I’ve embraced the opportunity to use my background in software, data and business to found a venture that now digitally transforms clients’ onboarding and monitoring processes, helps prevent fraud and also ensures regulatory compliance.</em></p><p></p><p><strong>The Beginning of NorthRow</strong></p><p></p><p><span style="font-weight:400;">My family roots in the automotive industry combined with an early interest in technology naturally led to an early career in software development in this sector. I was later hired as Chief Technology Officer and first employee of a very early internet startup which launched the UK’s first used car trading site and way back in 1997 won a contract to power the automotive channel of Microsoft’s MSN UK site. I consider this to be a ‘real world MBA’ as I learned quickly about understanding and overcoming the many challenges of a startup in an early and rapidly changing market. After several rollercoaster M&A transactions involving that business, I took time out for a real MBA from Oxford University’s Saïd Business School after which I was hired by DMGT where we made three acquisitions to created their Motors.co.uk division, since acquired by eBay. </span></p><p><span style="font-weight:400;">The idea for NorthRow came from my work at DMGT with the UK police to help found and then chair the Vehicle Safe Trading Advisory Group (VSTAG). This group of leading trade players and law enforcement officials was formed in response to increasing police concerns about the growth of online fraud. We developed an active and effective means of intelligence sharing which resulted in blocking fraudulent advertisements with a face value of around £250m in the first few years of operation.</span></p><p></p><p><strong>Fighting Classified Advertising Fraud</strong></p><p></p><p><span style="font-weight:400;">This success in helping tackle automotive classified advertising fraud led to meetings with other industry sectors and helped me identify an opportunity to tackle the fraud challenge that they too faced. It was clear to me that technology could provide a better solution by automating intelligence sharing, so in 2010 I made the decision to start a new venture to using data to tackle this fraud problem. I wrote the initial business plan, financial model and prototype software, aimed at a range of classified advertising sectors. </span></p><p><span style="font-weight:400;">I entered the annual Venture Fund competition at Saïd Business School and getting through to the final gave me the opportunity to pitch which lead to seed investment allowing me to take the venture to the next stage. After further engagement with law enforcement agencies and regulators, the business pivoted into an RegTech venture that now offers</span> <a href="https://www.northrow.com/kyb-checks#utm_source=innovate_finance&utm_medium=blog&utm_campaign=combating_financial_crime&utm_term=regtech"><span style="font-weight:400;">Know Your Business (KYB) checks</span></a><span style="font-weight:400;">, covering corporate entities, their directors and their Ultimate Beneficial Owners (UBO). Our offering includes</span> <a href="https://www.northrow.com/politically-exposed-persons-peps-monitoring"><span style="font-weight:400;">Politically Exposed Persons and Sanctions (PEPs) checks</span></a><span style="font-weight:400;">, Identity Verification and Identity Document checks, essentially all of the elements of vetting and continuous monitoring of entities now required by regulators.</span></p><p></p><p><strong>The Wider Fraud Problem</strong></p><p></p><p><span style="font-weight:400;">Today, NorthRow service</span><span style="font-weight:400;">s span</span> <span style="font-weight:400;">across the</span> <a href="https://www.northrow.com/financial-services#utm_source=innovate_finance&utm_medium=blog&utm_campaign=combating_financial_crime&utm_term=regtech"><span style="font-weight:400;">financial services</span></a><span style="font-weight:400;">,</span> <a href="https://www.northrow.com/fintech#utm_source=innovate_finance&utm_medium=blog&utm_campaign=combating_financial_crime&utm_term=regtech"><span style="font-weight:400;">FinTech</span></a><span style="font-weight:400;">,</span> <a href="https://www.northrow.com/property#utm_source=innovate_finance&utm_medium=blog&utm_campaign=combating_financial_crime&utm_term=regtech"><span style="font-weight:400;">property</span></a> <span style="font-weight:400;">and</span> <a href="https://www.northrow.com/hospitality-sector#utm_source=innovate_finance&utm_medium=blog&utm_campaign=combating_financial_crime&utm_term=regtech"><span style="font-weight:400;">hospitality</span></a> <span style="font-weight:400;">industries and provides managed services to supplement a</span> <a href="https://www.northrow.com/api-for-developers"><span style="font-weight:400;">single powerful API</span></a> <span style="font-weight:400;">that can power our clients’ onboarding and monitoring workflows. requirements vary and in each case, our in depth analysis and understanding of underlying customer specific needs and the ability to apply anappropriate solution have become a hallmark of</span> <a href="https://www.northrow.com/#utm_source=innovate_finance&utm_medium=blog&utm_campaign=combating_financial_crime&utm_term=regtech"><span style="font-weight:400;">NorthRow</span></a><span style="font-weight:400;">’s approach. </span></p><p><span style="font-weight:400;">Running any business, especially a RegTech business, requires a commitment to more than just the delivery of effective and reliable services but to a strong set of values. Integrity is first and foremost of those values for us, which means that the NorthRow team are all expected to do and trusted to do the right thing, with a fundamentally ethical approach to all that we do. The team have the freedom to challenge and innovate, supporting the firm’s growth with an entrepreneurial spirit. The team here listen hard to clients, getting to the heart of their problems and enabling them to find new ways to tackle their pain points, understanding the complexities they experience in guarding against financial crime whilst smoothly onboarding and monitoring their customers across different industries and geographies.</span></p><p><span style="font-weight:400;">NorthRow’s future lies in being the partner of choice for complete and continuous</span> <a href="https://www.northrow.com/kyb-checks"><span style="font-weight:400;">KYB checks</span></a> <span style="font-weight:400;">in digital transformation projects, either working directly with clients or with our growing network of software and consultancy partners. Helping to address the range of challenges thrown up by an ever changing regulatory and business environment remain core to the business.</span></p><p></p><p><strong>Our Motto</strong></p><p></p><p><span style="font-weight:400;">My favourite quote is by Harvard Business School’s Professor Howard Stevenson who defined entrepreneurship perfectly as the ‘</span><i><span style="font-weight:400;">relentless pursuit of opportunity without regard to resources currently controlled.</span></i><span style="font-weight:400;">’ You have to find a way to solve problems innovatively and come up with solutions that don’t yet exist and we extend that mentality to solving problems for our clients too.</span></p></div>Improving Regulatory Change Management in 3 Stepshttps://globalriskcommunity.com/profiles/blogs/improving-regulatory-change-management-in-3-steps2019-10-30T14:16:31.000Z2019-10-30T14:16:31.000ZChristine Thomashttps://globalriskcommunity.com/members/ChristineThomas360factors<div><p><span>Managing regulatory change is a major headache for businesses operating in industries where the regulatory framework fluctuates. The problem is that the regulations define what the business can and cannot do</span><span>, and when they change, the business must change how it operates. This makes it difficult to make long-term plans and strategies, because there is always a risk that the chosen strategy may no longer be viable if the regulatory framework fluctuates. </span><span> </span></p><p><span>If your business is stuck in a similar quagmire, there’s no reason to fret. Here are 3 steps that businesses can take to improve the management of regulatory change. </span><span> </span></p><p></p><p><span style="font-size:12pt;"><strong>1 – Create a risk map </strong></span></p><p><span>Creating a risk map is an essential part of regulatory change management which is often skipped by business, and they end up paying the price later. There are many links between regulations, policies, and business processes. There may be a policy which is directly related to a regulation. When you create a risk map you </span><span>create a model of all the relationships between regulations and parts of your business.</span><span> </span></p><p><span>What is the point of this process? It makes it very easy to manage regulatory change. </span><span>Normally, whenever there is a regulatory change, the business must do an audit of its policies and processes to determine what will be affected by the regulatory change. As you can imagine, this is not an easy or quick process, and there are chances that something might be missed. It is, however, an essential process.</span><span> </span></p><p><span>When a risk map exists, they don’t have to go through everything – they already know what regulations is linked to which policies and which processes. So, if regulation 31a changes, their risk map will tell them that policies 2b and 5c were dependent on regulation 31a. It will also tell the business about the business processes affected by policies 2b and 5c.</span><span> This means that simply by knowing which regulation changed, management would know which polices and processes would be affected by the change.</span><span> While making the risk map takes some time and effort in the beginning, it significantly reduces the time and effort required whenever any regulation changes.</span><span> </span></p><p></p><p><span style="font-size:12pt;"><strong>2 – Get more updates about regulations </strong></span></p><p><span>Most regulatory experts </span><span>have to</span><span> rely on their own research to determine how the regulatory framework is changing. While they do a great job, the process can be made much better. There are many services and trade magazines which focus on regulatory changes. There are software solutions that provide the latest regulatory news and updates as well.</span><span> </span></p><p><span>Subscribing to these tools is well worth the minor cost of such services. These services ensure that you get all the relevant regulatory news your organization needs to know. Instead of having to go out and find relevant information, the relevant information itself comes over to you. This saves a lot of time and effort </span><span>and also</span><span> provides more business intelligence than would be possible otherwise. There are standalone solutions which provide these updates and many regulatory change management solutions </span><span>also have a similar service as an added feature. Make sure you ask about regulatory updates from the vendor of your regulatory change management solution.</span><span> </span></p><p></p><p><span style="font-size:12pt;"><strong>3 – Add automation to change management </strong></span></p><p><span>One of the most significant steps an organization can take is to implement a regulatory change management system. These solutions are designed to help organizations get updates about regulations </span><span>and also</span><span> implement the necessary changes. These solution</span><span>s</span><span> provide regulatory updates </span><span>and also</span><span> have a great risk map built in within them, which further reduces the time and effort required to manage regulatory changes. </span><span> </span></p><p><span>Small organization can survive with manual change management methods, but mid-sized to large enterprise </span><span>need a better approach that streamlines the process. There are regulatory change management solutions available in all shapes and sizes. There are </span><span>on-site solutions developed by legacy vendors that require millions of dollars to implement and maintain. These are usually only used in the largest multi-national organizations, because their cost is too high for any other type of business.</span><span> </span></p><p><span>Smaller businesses need not worry – they also have a wide variety of solutions to choose from.</span><span> </span><span>Smaller businesses should look at cloud solutions that have recently been released. These solutions have a significantly lower implementation cost and their maintenance is handled by the solution provider, which further simplifies the whole process.</span><span> </span></p><p><span>Businesses will always have to work with </span><a href="https://www.360factors.com/blog/understanding-regulatory-change-management/"><span>regulatory changes</span></a><span>, because governments keep changing regulations as they see fit. It is important to include a bit of flexibility and change management in </span><span>the </span><span>long-term</span><span> plans of the organization, and </span><span>to make sure that there is </span><span>a </span><span>process to manage change</span><span>. Regulatory change management is an on-going process which requires constant attention, and it is also necessary that there is a tool in place that makes the process easier for the regulatory experts within the organization. </span><span> </span></p></div>Trulioo Extends Global Identity Verification Solution to the Czech Republic and Slovakiahttps://globalriskcommunity.com/profiles/blogs/trulioo-extends-global-identity-verification-solution-to-the2019-01-23T19:28:50.000Z2019-01-23T19:28:50.000ZCaitlin Porterhttps://globalriskcommunity.com/members/CaitlinPorter<div><p class="responsiveNews">Trulioo, the leading global identity verification company, today announced that it now verifies customers in the Czech Republic and Slovakia through its electronic identity verification platform,<span> </span><a href="https://www.trulioo.com/product/identity-verification/" title="GlobalGateway">GlobalGateway</a>, helping to mitigate money laundering and fraud in two of the world’s fastest growing markets.</p><p class="responsiveNews">“Expanding our solution to both the Czech Republic and Slovakia is critical,” said Stephen Ufford, CEO and founder of Trulioo. “Not only are they two of the fastest growing economies in Europe, but they’re also home to some of the fastest growing tech companies in Central Europe,” said Ufford.</p><p class="responsiveNews">Keeping pace with new regulations and technologies in growing markets, however, is an ongoing process. As technology, consumer behaviors, laws and international standards continue to evolve, so do fraud schemes. Today’s fraudsters are well-funded, skilled and equipped with the latest technology, which makes staying ahead of them more difficult than ever before. In fact, according to<span> </span><a href="https://www.natcnc.com/msb/evolution-money-laundering/" title="National Check and Currency">National Check and Currency</a>, money launderers now employ complex networks and covers and use modern accounting and financial tools to defraud both the traditional and alternative financial industries. These evolving methods have enabled criminals to conceal their identities in a new way, which presents a huge challenge for financial institutions and law enforcement agencies.</p><p class="responsiveNews">“Both member states will be required by the EU’s Fifth Anti-Money Laundering Directive (<a href="https://www.trulioo.com/blog/5amld/" title="5AMLD">5AMLD</a>) to implement new provisions that close loopholes, consider new technologies and improve transparency while still protecting personal data and adhering to international agreements,” Ufford continued.</p><p class="responsiveNews">The Czech Republic and Slovakia are both taking steps to thwart rising fraud and money laundering. According to the<span> </span><a href="https://www.state.gov/j/inl/rls/nrcrpt/2014/supplemental/227766.htm" title="U.S. Department of State">U.S. Department of State</a>’s report on the Czech Republic, the country’s central European location and openness as a market economy leave it vulnerable to money laundering. In recent years, its government has put legislation in place to combat this high level of fraud and continues searching for solutions to the large scale of fraud faced today. The country also recently became a party to the<span> </span><a href="https://www.business-anti-corruption.com/anti-corruption-legislation/united-nations-convention-against-corruption/" title="United Nations Convention against Corruption (UNCAC)">United Nations Convention against Corruption (UNCAC)</a><span> </span>as well as the<span> </span><a href="http://www.oecd.org/corruption/oecdantibriberyconvention.htm" title="OECD Anti-Bribery Convention">OECD Anti-Bribery Convention</a>.</p><p class="responsiveNews">Meanwhile, the Slovakian government recently approved a<span> </span><a href="https://www.konecna-zacha.com/en/slovakia-revision-of-the-anti-money-laundering-act/" title="propsal">proposal</a><span> </span>that amends an existing act to increase the transparency of ownership of legal entities and the preservation of information. Under the amended act, all legal entities and special purpose asset arrangements are obligated to register and maintain documentation on ultimate beneficiary owners (UBOs). The UBO’s identification details must be recorded by a legal entity each year and for a period of five years after the termination of the UBO’s status, according to<span> </span><a href="http://www.cechova.sk/EN/Default.aspx?CatID=140" title="Cechova and Partners">Cechova and Partners</a>.</p><p class="responsiveNews">Developed to help businesses automate their customer onboarding processes and comply with Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements, GlobalGateway powers fraud prevention and compliance systems for hundreds of financial institutions, payments, banks and online marketplaces worldwide.</p><p class="responsiveNews"><strong>About Trulioo </strong><br />Trulioo is a global identity and business verification company that provides secure access to reliable, independent and trusted data sources worldwide to instantly verify consumers and business entities online. Trulioo’s bank-grade online verification platform, GlobalGateway, helps organizations comply with Anti-Money Laundering (AML) and Customer Due Diligence (CDD) requirements by automating<span> </span><a href="https://www.trulioo.com/blog/kyc/" title="Know Your Customer">Know Your Customer</a><span> </span>(KYC) and<span> </span><a href="https://www.trulioo.com/product/global-business-verification/" title="Know Your Business">Know Your Business</a>(KYB) workflows. Trulioo supports over 500 global clients to instantly verify 5 billion customers and 250 million business entities in over 100 countries - all through a single API integration. Named as a 2017 CNBC Disruptor 50 Company, Trulioo’s mission is to solve global problems associated with verifying identities by powering fraud prevention and compliance systems for customers worldwide in an effort to increase trust and safety online. For more information visit<span> </span><a href="http://www.trulioo.com/" title="trulioo.com">trulioo.com</a>.<span> </span></p></div>