Leveraging Machine Learning to Enhance Accuracy and Efficiency in Regulatory Compliance

Abstract

Automating identification and analysis of regulatory and compliance changes through the advanced Artificial Neural Network (ANN)-based Regulatory Compliance Platform for Financial Services will help alleviate the growing complexity and volume of regulations that Financial Institutions must comply with. The platform incorporates cutting-edge Natural Language Processing (NLP) and Machine Learning (ML) technology to automate the detection, extraction, and analysis of regulatory changes from multiple regulatory agencies, third-party providers of regulatory information like Bloomberg and Thomson Reuters, and other Corporate News Sources. The Compliance Management Process relies on a Comprehensive Architecture Built on the following components: Automated Workflow for Timely Correction of Regulatory Violations, Intelligent Regulatory Risk Assessment (IRRA) that matches the organisation’s internal policy; Enhanced Text Processing Capability to interpret Legal Requirements, Efficient Ingestion of Data from Multiple Sources of Regulatory Information, Notification of Regulatory Changes as they occur and a Centralised Repository for the organisation’s Compliance Data. The provision of a single Point-of-Access for Compliance Data and real-time access to Compliance Data for all stakeholders will provide: best practices for Transparency; increased readiness to Audit; and improved Compliance with Regulatory Requirements; and decreased Opportunities for Human Error as well as reduced Workload for Both Regulator and Compliance Functions. Since the implementation of the Platform, Organisations have seen improved accuracy in compliance, faster response to regulatory changes, increased areas for regulatory Risk Assessment and reduced Costs of Regulatory Compliance Operations. This article will also discuss Some Future Development Opportunities for designing an integrated Global Compliance Platform with Emerging Security Technologies and artificial intelligence (AI) for Predictive Analytics regarding Regulatory Compliance.