Title: How to Stay Ahead of Compliance Regulations in 2024
As the financial industry continues to evolve with technological advancements, compliance regulations are becoming increasingly complex. Compliance technology is the key to keeping up with these changes and avoiding penalties for noncompliance. In fact, Holly Sais Philippi, CEO of RegTech firm Alessa, predicts that compliance technology will see higher adoption rates in 2024 and beyond.
To stay ahead of compliance regulations in 2024, insurance executives must consider the following factors:
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Geopolitical conflicts and changes: Global conflicts can lead to changes in sanctioned individuals, companies, and regions. It is critical to ensure that watchlists, sanctions lists, and politically exposed persons (PEP) lists are updated in real-time to avoid penalties for noncompliance. Compliance technology can help navigate these changes immediately and with added functionality such as scoring and AI/ML to reduce false positives.
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Technological advancements of FI internal systems: Technological advancements in payment processes and systems have added additional burdens to FIs’ transaction monitoring and screening processes. To address consumer demand, payments have become increasingly more digitized and complex. Compliance technology can help FIs implement real-time transaction monitoring and screening solutions to meet compliance regulations and reduce fraud.
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Use of technological advancements and artificial intelligence (AI) in financial crime: AI can help detect and prevent financial crime by analyzing large amounts of data and identifying patterns and anomalies. Compliance technology can leverage AI to improve transaction monitoring and screening processes.
To ensure compliance in 2024 and beyond, insurance executives should consider implementing parametric insurance solutions. Parametric insurance uses real-time data and dynamic risk modeling to enable insurers to build and operate insurance at scale. With Riskwolf, insurance builders can turn real-time data into insurance and stay ahead of compliance regulations.
In conclusion, compliance technology will continue to reign supreme in 2024 and beyond. Insurance executives must stay ahead of compliance regulations by leveraging compliance technology and implementing parametric insurance solutions. Don’t take chances with attention, get in touch with Riskwolf to develop parametric insurance for your case.