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Key Considerations for Your Next Compliance Tech

Dun & Bradstreet’s Global Regulatory Strategist outlines six key traits compliance professionals should be on the lookout for when evaluating next-gen compliance solutions. In an increasingly global economy where pressure for cost control is high, accessibility to broader data and advanced technologies can help compliance executives manage new regulations and intensified scrutiny.

Compliance executives today are in a constant state of reaction mode as U.S., EU and U.K. regulators continue to introduce new regulations and intensify scrutiny to address shifting priorities. Ideally, it’s safe to say that compliance professionals would much rather take a proactive approach to contend with day-to-day challenges, solving issues before they become crises. In fact, that approach is a fully attainable goal rather than a pipe dream, but in order to do so, compliance teams may want to consider some of the cutting-edge solutions available today as artificial intelligence (AI) wends its way further into business operations.

Choosing next-generation compliance data and solutions that are customizable, flexible and future-proofed will help teams better manage compliance in an increasingly global economy and at a time when the pressure for efficiency and cost controls has never been greater. Accessibility to broader data and advanced technologies such as AI, machine learning and blockchain will all become part of that solution.

What exactly does it look like?  Here are 6 critical components your next-gen compliance solution should possess.

  1. A centralized, cloud-based systemthat enables global business units of an organization to access it anytime, anywhere and in local languages. It would also enable an organization’s headquarters to monitor the screening process, handle escalations, perform big data analysis in real time and report risk. That will give internal and external auditors visibility into system controls and audit trails, moving the company one step closer to global consistency.
  2. Global regulatory data, balanced with regional specifics. It is necessary to have a global regulatory database covering the critical sanctions and regulations worldwide, as well as city- and country-specific data that aligns with local regulations. In addition, depending on the industry, a more granular level of lists – local sanctions, or certain data only available in local languages – should also be considered.
  3. A 360-degree customer view. The solution should be able to match and extend customer identification data to a valid full profile, which includes beneficial ownership (BO) information required by many regulations; people with significant control (PSC) data; key principles; and parties meeting a certain threshold for aggregated ownerships, such as those required by the OFAC 50 percent rule and similar regulatory reporting rules. Technology exists that can move this process from a manual to an automated workflow and enable flexible changes on threshold and aggregated ownership analyses.
  4. Configurable settings and visualized reporting and workflow. The solution should enable users to configure the screening process in detail, such as selecting lists or events to screen against, changing the matching rate and geography radar, adding or de-selecting certain risk parameters, adjusting the risk model easily, customizing reporting templates and frequencies and customizing workflow design, tailored to the company’s needs. Adopting a visualization technology will provide an easy-to-digest graphic view of complex entity structures and can make reviewing and auditing processes easier to navigate.
  5. An integrated solution that consolidates compliance processes.Ideally, the system should be a one-stop shop, aligning identification, verification, risk assessment, screening, alert reviews, decision-making, monitoring and reporting functions, and supported by accurate, up-to-date reference data and regulatory data. It should enable management of each contract and vendor relationship seamlessly.
  6. Forward-thinking, extendable and scalable architecture. The solution should be developed with advanced and open-source technology. Considering the convergence trends among various compliance practices, such as anti-money laundering (AML), anti-bribery/anti-corruption (ABAC) and anti-fraud, having a solution that can be flexible enough to enable plugging in new data sources, predictive or risk assessment models and other new modules to handle multiple compliance needs is crucial.

Consider these six factors when choosing your new compliance solution or updating your existing capabilities and you will be far better prepared for the future.

Yunhong Liu

Yunhong (Hong) Liu is Sr. Director, Global Regulatory Strategist, Dun & Bradstreet. An Advanced Certified Anti-Money Laundering Specialist with a focus on Compliance Audit (CAMS-Audit), Hong is a compliance subject matter expert with extensive international experience and 10+ years background in compliance, data management and banking operations. She covers AML and anti-bribery/corruption practices for large global accounts. Hong holds a bachelor’s degree in International Finance and a master’s degree in Accounting, as well as an MBA from CU Leeds School of Business.

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