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< Previous10 We are the only global AI-driven RegTech source of high-risk entities and profiles. We help all our client companies detect and prevent money laundering, sanctions, evasion, and other associated risks Building a Repository of Data and Insights With various waves of corruption across financial businesses, banks and payment companies have had to ensure that they deal with terrorists, motorists, or corrupt foreign politicians. To deal with such challenges, typically people collate and maintain a database. However, CompliAdvanta is the first company to create and establish a powerful and seamless database via algorithms and machine learning. Its ComplyData is a persistent repository of data and insights. The database enables to seamlessly explore the connections between individuals and business entities in a single, simple relationship structure to “identify the unseen” while continuously enriching profiles through linking and integrating siloed data. “We automatically in real- time collate data using algorithms based on the type of different risks and signals, which means better and more up-to- date data,” adds Delingpole. This means, with CompliAdvantage, businesses get accurate data which provides results in lower false negatives and false positives. “So, you get fewer misses of people you're meant to catch that you don't catch and fewer irrelevant hits,” he explains. In addition, ComplyAdvantage also offers a transaction risk management solution. This way, the company’s customers could process any transaction with confidence, and monitor and screen all transactions in real-time to enable holistic detection of financial crime. The solution is uniquely designed to monitor billions of transactions at 100 TPS with a sub-second response time. As a result, businesses can not only reduce false positives but also reduce the time to build risk scenarios with a no-code rule builder. With ComplyAdvantage, businesses can identify transaction frauds by leveraging data and a flexible, AI-powered rules engine to identify fraudulent transactions in real-time. Moreover, transactions can be monitored over time to identify suspicious behavior. The solution is uniquely crafted to identify risk before it materializes and stop transactions in real-time by screening all elements of a transaction including name, address, bank details, BIC, and reference notes. Streamlining KYC ComplyAdvantage is also a pioneer in enabling businesses to streamline KYC programs. It enables to screen against the world’s only real-time risk database of people and companies. Companies can also automate customer onboarding and monitoring with the company’s real-time AML risk database. As a result, businesses can not only reduce dependence on manual review processes and legacy databases but also dramatically boost their customer experience.11 When it comes to the crypto industry, principally, ComplyAdvantage is helping with two things, including identity verification and transaction monitoring. The solution can analyze the behavioral pattern of different types of movements and detect the precise risks even when the entity involved is unknown. Another innovative offering from the company is ComplyLaunch, an offering that helps businesses to Set up and scale compliance programs with free access to award-winning AML and KYC tools and resources. The program offers startups free access to the tools and resources needed to grow with integrity and confidence while keeping costs under control. With this cutting-edge offering, startups will have access to award-winning AML data that facilitates sanctions, and connect politically exposed persons, relatives, and close associates. While providing start-ups with ongoing monitoring alerts related to relevant changes in risk status via a single API call, the offering also helps to establish operations with configurable cloud solutions in UI or API form and seamlessly integrate into an existing workflow. The Game-Changing Solution Since opening its doors, ComplyAdvantage has been a game-changer in delivering cutting-edge anti-money laundering and fraud prevention companies. Charles is a technology entrepreneur who has extensive executive experience in financial services across the U.S., Europe, and Asia. Under the leadership of Charles Delingpole, the company is set out to redefine the way fraud prevention and regulatory requirements are managed. Delingpole points out that the company’s biggest investment is its people. As part of its evolution plan, the team is also spending over $70 million this year on the best technologists, and product managers to build the right solution that covers every unique client requirement. “We're constantly expanding the breadth, depth, scope, accuracy, and timeliness of the data, and systems with the correct language matching logic embedded into the API. To do it, you should know every language in the world. Though that's kind of a huge task, and many people thought it was impossible. We've done great progress in that, making the impossible, possible,” explains Delingpole. Today, ComplyAdvantage has its presence in over 80 countries. Going forward, the company’s ultimate goal is to have a database of every person and every company in the world spanning credit for identity and risk. We automatically in real-time collate data using algorithms based on the type of different risks and signalsTHE ANATOMY OF THE NEW FRAUDSTER AN ESSENTIAL GUIDE FOR FINANCIAL INSTITUTIONS SCAN TO DOWNLOAD bpcbt.com13 Acin has built the defining data network for operational risk control, for leading financial institutions. Acin’s award- winning Risk Control Diagnostics platform digitizes and assures operational risk controls in a connected data network across the financial services industry. E merging business and service models indicate that innovation is still advancing more quickly than regulation. Regulatory and supervisory bodies are considering supervisory technologies to provide oversight, adopting more flexible approaches to develop policy and publishing guidelines on emerging technology topics such as data privacy, algorithmic decision making, autonomous vehicles, and initial coin offerings. Regtech is a very active and rapidly developing field since regulatory compliance has grown more difficult and crucial during the COVID-19 epidemic. While utilizing technology platforms like blockchain to implement efficient regulatory solutions and adjust to the continuously evolving global regulatory environment, the RegTech market is faced with several obstacles. Moreover, the development of fintech in the new post- pandemic manner has sped up the digitization of RegTech applications and improved the environment. However, there are a variety of regulatory solutions as well as services that are around the industry today. As the industry is filled with numerous solution providers, businesses around the globe are finding it a tough time to find the right partner. To sort down this challenge, our team of editors, CEOs, CTOs, and researchers have listed a set of innovative solution providers creating a difference in the Regulatory Technology space. Here are the “Top 10 RegTech Solution Providers 2022”. Compliance and Risks' mission is to help ensure global companies have the tools to build consumers safe, sustainable, products in a world full of change. They are the trusted market access technology provider for the world’s leading brands. They stay ahead of an ever- evolving regulatory landscape so that you can, too. Paul Ford Founder & CEO Management Location Website acin.com London, England Joe Skulski CEO Management Location Website complianceandrisks.com Cork, Ireland SOLUTION PROVIDERS 2022 TOP REGTECHComplyAdvantage believes that compliance doesn’t have to be painful. Businesses need real-time financial crime insight to put them in control. They enable clients to understand the real risk of who they’re doing business with, through the world's only global, real-time risk database of people and companies. DocFox is the leading provider of business account opening software, used by over 250 financial institutions worldwide including banks, crypto companies, fintechs, and credit unions. DocFox creates a streamlined onboarding experience for financial institutions, automating previously manual tasks for both business account applicants and employees. The company help customers make the crypto economy a safe place to transact and invest as crypto paves the way for a new, digital monetary system. Crypto businesses, financial institutions, and government turn to Elliptic for blockchain analytics, training, and certification to better manage financial crime risk in crypto. Interfacing Technologies Corporation is the global leader in Integrated Management Systems, empowering organizations to efficiently govern business complexity through business process management software and quality management solutions. Interfacing’s solutions are intuitively designed for business users; facilitating multiple organizational programs within a single platform and covering the full spectrum of quality, governance, improvement, and compliance initiatives. Charles Delingpole Founder & CEO Management Location Website complyadvantage.com London, England Ryan Canin CEO Management Location Website docfox.io Boston, MA Tom Robinson, Chief Scientist Management Location Website elliptic.co London, England Meir Levi CEO Management Location Website interfacing.com Montreal, Quebec SOLUTION PROVIDERS 2022 TOP REGTECHJWG is recognised by regulators, financial institutions and technology firms as the independent analysts to help determine how the right regulations can be implemented in the right way. Their independence permits them to collaborate with regulatory and industry bodies, financial institutions and technology firms without serving the interests of any constituent over another. A leader in providing technology solutions in the regulatory compliance space, Red Oak Compliance Solutions helps compliance teams create more efficient, compliant review processes. By shifting the compliance team's focus to higher priority tasks, Red Oak transforms compliance into a strategic and competitive advantage within the organization. InstantWatch by Trapets empowers companies to remain compliant and combat financial crime. Through InstantWatch, users have access to: KYC, AML, CDD, Market Surveillance and Financial Crime Surveillance. The modular-based SaaS product suite monitors over 3 billion transactions per day and serves 200+ customers globally. Know Your Customer provides next generation digital on- boarding solutions to financial institutions and regulated organizations around the world. They empower compliance teams to better protect their business and efficiently perform all necessary KYC and AML checks on both corporate and individual customers, centralizing the on-boarding process through a uniquely easy-to-use platform. PJ Di Giammarino Founder & CEO Management Location Website jwg-it.eu London, England Claus Christensen Co-Founder & CEO ManagementLocation Website knowyourcustomer.com Wan Chai, Hong Kong Stephen Pope Co-Founder & CEO Management Location Website redoakcompliance.com Cedar Park, TX Dan Sjöholm CEO Management Location Website trapets.com Stockholm, Sweden SOLUTION PROVIDERS 2022 TOP REGTECHREGSCALE Governance, Risk and Compliance…in real time C ompliance today is largely conducted using Word documents and Excel spreadsheets that are instantly out of date the moment they are created. In the late 1990s and 2000s, the seeds of digitizing compliance started being planted. However, achieving and maintaining compliance has never been a piece of cake, especially for heavily regulated entities using traditional Governance, Risk and Compliance platforms. With the advent of cloud and modern technology approaches, the time has come to reimagine compliance, to make compliance real-time, to make compliance continuous, and to make compliance complete. This is where RegScale, an organization that helps its clients to continuously comply in real-time with multiple compliance requirements, has developed a novel approach to this problem. “We help heavily regulated organizations start compliant and stay compliant with their ongoing regulatory obligations,” explains Anil Karmel, Co-Founder & CEO, RegScale. RegScale’s innovative software platform digitizes any compliance requirement, then integrates with existing security tools. The findings from these tools are brought into RegScale as mapped to compliance requirements, which then in turn automates the creation of tickets in ticketing systems, and couples a great human- and machine experience to output audit-ready documentation on demand. In fact, RegScale is the only solution that holistically manages compliance programs—both manual and automated assessments—at scale. It not only saves time and reduces risk but also enables reuse of assessments across multiple standards by allowing customers to bring their own mapping of controls into the platform. What makes the company stand out from the crowd is the approach RegScale employs by bringing the principles of DevOps to Compliance in a new discipline called Regulatory Operations or RegOps. Compliance professionals can now continuously gather data and monitor control state in real time using RegScale’s easy to use browser-based interface, delivering a great experience to both the auditor and the audited while simultaneously allowing output in both human- and machine-readable formats. While explaining the company’s unique value proposition, Karmel recalls an instance when the team Anil Karmel, Co-Founder & CEOassisted a Fortune 500 Financial Institution to get out of Excel Spreadsheets and Word docs and move into a compliance system of record. RegScale’s team was able to digitize their compliance requirements and integrate with a cloud security platform they had called Wiz. The team brought those findings from Wiz into RegScale, automated the creation of tickets in their ticketing system, and helped manage their compliance documentation directly in the software. The client also built enterprise reporting on top of RegScale in a Business Intelligence platform called Tableau to visualize their state of compliance in real time. Since opening its doors, RegScale has been a pioneer in delivering the world’s first real-time Governance Risk and Compliance platform to customers around the globe. What led to the founding of RegScale is that its co-founders personally felt the pain of compliance. As explained by Karmel, “when we came out to the Department of Energy’s National Laboratories, we ran into a brick wall when it came into compliance. We had to build all this documentation in Word and Excel. That's where the idea was born to reimagine compliance and build a solution that would solve this problem at scale.” Today, RegScale has positioned itself as a market leader and is leading the RegOps movement to transform how compliance is done. In that vein, Karmel said, “We believe compliance shouldn't be unaffordable, in fact, we believe it should be free. That’s why our Community Edition is completely free to get started. We are here to free organizations from (digital) paper by simplifying and automating regulatory compliance, outputting evergreen compliance paperwork on demand while simultaneously visualizing compliance and operational risk in real time.” We believe compliance shouldn't be unaffordable, in fact, we believe it should be free. That’s why our Community Edition is completely free to get started18 MEASURING SUSTAINABILITY: THE GROUNDWORK FOR GROWTH By Rebecca Harding, CEO, Coriolis Technologies O n December 21st 2015, the United Nations announced the Paris Agreement, outlining the stark warning that emissions need to be cut by 50% by 2030 to stay below 1.5 °C of global warming. The UN followed this announcement by publishing 17 Sustainable Development Goals (SDGs), giving clear, global ambitions to policymakers, regulators, banks, businesses and investors to emphasise the symbiosis between the planet, economic activity and economic development. In December 2021, analysts and commentators were talking about 2022 as likely to be the most critical year for sustainability since the Paris Climate Accord. Policymakers set ambitious net- zero goals, and there were further bans on deforestation and targets to reduce the amount of methane produced by cattle. What happened? Since then, the US Securities and Exchange Commission has proposed amendments to require specific disclosure of funds’ and investment advisers’ use of Environmental, Social and Governance (ESG) factors as part of their investment decisions and strategies. Meanwhile, the Sustainability Accounting Standards Board have laid out an ESG guidance framework that sets standards for the disclosure of financial material by companies to their investors to collect sustainability information. The EU has also introduced stringent mandatory reporting requirements in the form of the Sustainability Financial Disclosures Regulation and the EU taxonomy. Yet the “how” of all of this remains vague. What to measure is clear, but how to do this consistently and in a standardised way is not. There is a heavy reliance on self-reporting at a company level which means that the whole move towards making business and trade comply with sustainability standards will be at risk Rebecca Harding, CEO19 from incomparable, incomplete, or simply missing data. Thus, to avoid inevitable accusations of “Greenwash” and the compliance quagmire experienced with Anti-Money Laundering and Know Your Client legislation, the definition of how to measure sustainability in a standardised way must become a regulatory pre-requisite. An automated solution: Building from the approach taken by the International Chamber of Commerce’s joint position paper on measuring sustainable trade, which puts forward a proposal to use the SDGs as a framework for the approach to financial reporting, we can create an automated and consistent mechanism for measuring sustainability. This initial framework is helpful, yet there is little guidance on exactly what needs to be measured and, most importantly, what is the base unit of measurement. The solution is to use an approach developed by the United Nations Economic and Social Commission for Asia and the Pacific, first published in 2019, by matching product HS codes (used in international customs and excise records) to Sustainable Development Goals. By consistently focusing on trade flows between countries, we can build a picture of the sustainability of global activity and cross-reference this against all regulations mentioned above while also creating a scalable framework that can incorporate any potential future regulations. The approach reveals some interesting findings. First, trade generally across the world creates more negative contributions to SDGs than positive ones. On a scale of -1 to +1, where -1 is all trade contributes negatively, zero is neutral, and +1 is all trade contributes positively, world trade comes out at -0.58. In other words, the balance between positive and negative contributions to SDGs is tipped predominantly towards negative SDGs: some 80% of the value of world trade is unsustainable in this sense. Emerging economies on a simple match like this are slightly more “sustainable”, although still largely negative, simply because of the fewer consumer products they trade. Second, suppose we break down the SDGs into their “Environmental”, “Social”, and “Governance” elements, again using the trade profile of a country as the proxy. In that case, the picture shows potentially where the macro policy levers may be. For example, world trade scores -0.73 on its environmental balance against SDGs and -0.91 on its social balance against SDGs. However, on Governance, measured primarily from positive contributions to decent work, economic growth, and good health and well-being, the score is a positive of 0.43. In other words, the world of trade and trade finance, alongside regulators, has put in place the governance structures to minimise economic risks in the form of employment, economic growth and basic health provisions, but the price for the environment and social equality and justice is overwhelmingly high. Creating a sustainability trade profile like this is a practical conceptual first step to building a fully-fledged country ESG risk trade profile. HS codes in themselves are not products; they are product categories. Matching them beyond the category to sector and activity levels is potentially over-aggregating, creating a stylised picture. The system must balance the risks of false positives or negatives at a company level, but using this approach against the imperative for finding a quick and straightforward measurement creates a compelling call to action from which the industry can grow. This scoring system is a wake-up call for world trade and policymakers worldwide. Some of the most advanced economies have the least sustainable trade accounting for some $18.5tn in value terms in negative contributions to responsible consumption and production. If we are to meet the ambitious targets laid out at COP 26, we cannot afford to ignore these messages. Most world trade is unsustainable; where it is not, it is a symptom of under- development. There are further advantages to this process. First, since we know where the most significant negative contributions are likely across world trade, we know the levers we should pull. Second, we also know the sectors to blame for the low scores of some countries: automotive, consumer electronics, machinery and components, plastics, iron and steel, and oil and gas. Suppose Governments can implement policy incentives toward using electric cars and clean energy. In that case, this may address some of the current negative roles that automotive and fossil-fuel trade play. These are age-old challenges, and addressing them will be neither quick nor easy. However, if we know how to measure them, we can also measure progress towards addressing them. This feels like progress. Next >