10 | The Role of RegTech in Transforming Compliance for 2025
Trans World Compliance
AEOI compliance simplified, smarter. We support CRS, FATCA, the OECD's BEPS initiatives and country specific regulations
RegTech is bringing enhanced efficiencies and solutions to compliance in the run-up to 2025. For years, financial institutions have struggled with inefficiencies in manual processes and reporting silos. Yet, with digitization, industry players enjoy easier compliance and reduced risk and costs.
Automated compliance platforms are a trend driving this transformation. FATCA and CRS (not to mention AML) regulations apply increasing pressure on financial institutions to report accurately and on time. RegTech refers to technology solutions that use AI, machine learning (ML), and cloud-based services to automate the processes of data validation, data reporting, and error detection/correction. Organizations can use their resources to work on more strategic tasks by minimizing the need for human involvement.
Regulatory intelligence is a powerful capacity that RegTech solutions enable. These tools evolve with changing regulations so that institutions aren't forced to revamp systems and spend unnecessarily. By 2025, financial institutions need to ask the question: not whether to implement RegTech but how quickly they can make it part of their processes so they can compete.
With the penalties for failing to comply increasing, RegTech isn't merely a solution; it represents a competitive edge. The institutions investing today will be well-equipped to deal with the coming regulations in the future.
CRCA Conference 2024: St. Maarten
The Trans World Compliance team joined industry leaders for the 2024 CRCA Conference in St. Maarten last month. This important event showed that our regulatory challenges call for greater collaboration, innovation, and efficiency. A significant point has come out about the FATF mutual evaluations of countries, including whether a country's legislation, asset forfeiture, and enforcement success is satisfactorily addressing the issues. Expert panels urged their audience to rely on their "moral compass" and do "the right thing" in ambiguous situations. Use ethical conduct, said experts because compliance will be of little value without integrity. These conversations energized our team to provide improved insights and assistance to our clients.
Cayman Islands Compliance Association Breakfast Seminar
The Cayman Islands Compliance Association organized a Breakfast Seminar, which the Trans World Compliance team sponsored. The seminar provided practical takeaways on the Common Reporting Standard (CRS), including typical inconsistencies encountered by the Department for International Tax Cooperation (DITC) each year. CICA had the pleasure of hosting the seminar in collaboration with the DITC, which endorsed best practices and highlighted the latest developments in the regulatory environment. A panel discussion revealed the industry's challenges and gave some practical solutions.
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