In our quest to offer Cloud Native micro-services to our clients we have developed ARC-M (Automated Regulatory Compliance-Management), a centralised automated distribution solution for effective regulatory compliance management for industries, such as financial services, gaming, betting.
We partner with ORO Services GmbH (ORO), a Frankfurt based Specialist in Regulatory Compliance Monitoring and Management. ORO monitor and manage over 50 different data sources across Germany, Europe and the US. Every new or amended regulation is stored in Regupedia, ORO’s proprietary data warehouse.
During ORO's consulting activities and in conjunction with market research activities ORO identified a number of typical issues faced by banks and financial institutions that constitute areas of concern.
Insufficient compliance with standards
Insufficient analysis of materiality of new standards
Inadequate monitoring of implementation efforts
Lack of cooperation between the Compliance and Business functions
Lack of, or insufficient Reporting
The challenge banks and financial services organisations face as a result of the observations can be summarised as follows:
How do banks monitor increasingly dynamic regulatory frameworks and procedures?
How are these analysed with regard to the impact on the banks or how are the resulting implementation activities coordinated?
How is compliance with existing standards maintained in relation to a dynamic market environment or a dynamic internal organisation of the banks?
How can decisions made on dealing with certain regulations be documented in a comprehensible manner?
Efficient regulatory compliance management through automation and standardisation
Efficient and targeted regulatory process including audit trails
Continuous supply of information on regulatory innovations
Timely identification of the need for action
Faster and more efficient implementation of regulatory changes
Risk-based definition and derivation of monitoring and control activities
Improved communication and coordination of the organisational units involved in legal monitoring
Uniform and centralised solution within the entire institute
Sustainable added value through the use of an automated process
Increase in reliability towards business partners and customers
Examination and, if necessary, adjustment of human resources due to lower resource expenditure
Broadly, the compliance data will be pushed into the bank's Jira instance where it triggers a workflow and notifies all stakeholders.
We've recently implemented this standard approach at a private bank. The client opted for our Bridge architecture to ensure the client's Jira instance can be accessed from an external data source complying with their security standards.
"The bank has the highest security requirements that prohibit external access to our Jira instances. The Accxia Bridge enables data transmission from external sources without compromising our security - it is part of their Intelligent Atlassian Solutions toolkit.
Innovative and brilliant!"
Private Bankers Frankfurt and London
"Compliance functions are a key component of banks' second line of defence for managing risks. Their role is to ensure that banks operate with integrity and adhere to applicable laws, regulations and internal policies."
- European Banking Supervision
A key success factor for efficient compliance management is the quality of IT tools. Some recent incidents have shown that a weak IT infrastructure for compliance monitoring (e.g. alert systems, workflow management, stakeholder management) could make it more difficult to identify risks. In this respect, recent advances in IT provide an opportunity to make compliance functions more efficient.
Banks need to do more in terms of implementing compliance-related policies and processes. They should enhance their testing, increase the involvement of the compliance function in product approval processes and improve the follow‑up of compliance issues or incidents reported by the second and third lines of defence.
Many banks can make effective use of ARC-M.
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