Benefits of a Two Layer Regulatory Intelligence Platform

The speaker, Gion-Andri Büsser of IMTF, discusses the critical need for modern technology in compliance, driven by exploding costs of compliance and even higher costs of non-compliance. He introduces a "two-layer regulatory intelligence platform" concept, emphasizing an orchestration layer that centralizes the treatment of compliance alerts, automates processes, fosters collaboration, and provides a holistic view of data. The video highlights how advanced technologies, including machine learning and data science, can be leveraged within this architecture to significantly reduce manual work, improve efficiency, and enhance risk management.

Key Takeaways:

• Ecosystem Approach to Compliance Technology: The video advocates for viewing compliance technology as an integrated ecosystem rather than disparate, siloed software packages. This platform approach is crucial for comprehensive data utilization and decision-making.
• The Power of the Orchestration Layer (Layer 2): A dedicated orchestration layer is presented as essential for consolidating and processing all compliance alerts (e.g., AML, fraud, sanctions), enabling flexible process automation, fostering collaboration across teams, and maintaining accurate, regulator-ready audit trails.
• AI/ML for Enhanced Efficiency and Risk Reduction: The "magic" of the orchestration layer lies in its ability to leverage AI and machine learning for advanced functions such as intelligent auto-closure of routine alerts, pre-processing to highlight historical patterns, and more granular, accurate risk rating based on comprehensive customer history.
• Strategic IT and Change Management Benefits: Implementing an orchestration layer provides significant IT flexibility, allowing organizations to introduce modern tools and interfaces without immediately replacing existing, potentially valuable, legacy detection systems (Layer 1). This enables a phased modernization approach, reducing disruption and risk.
• Continuous Adaptation to Evolving Threats: The speaker underscores that financial crime and compliance challenges are an "ever-ending battle," with criminal behaviors constantly evolving (e.g., due to pandemics, crypto). This necessitates adaptive, forward-looking technology to anticipate and combat new threats.g., GxP, 21 CFR Part 11, FDA/EMA regulations).