Here at RegPac, we believe that the regulation and compliance fields should evolve into the digital era and RegTech is what will power this change.
Technologies including automation, blockchain, AI and others will improve efficiency and reduce costs in regards to businesses compliance obligations.
We are here as an educator to help businesses understand their compliance requirements and as an intermediary - to match businesses seeking regulatory solutions and the providers of such solutions thus helping to integrate firms into the South East Asian market.
Why is this important?
Since the 2008 financial crisis, financial institutions globally have paid in excess of an eye watering US$36 billion in fines for an abundance of regulatory compliance failings ranging from AML & KYC to market manipulation & insider trading. In addition to this, the cost of compliance is also rising on a year-by-year basis as regulators crack down on organisations for repeating the same mistakes.
Regulation has been increasing globally at an exponential rate, with recent examples including GDPR in Europe, the California Consumer Privacy Act in the US and MAS 610 in Singapore. The rate at which new regulation is introduced is simply unmanageable for human employees to keep up with and juggle in addition to daily business operations whilst still remaining compliant.
The cost of compliance is high, but in comparison to the cost of noncompliance is almost a non-issue. In order to avoid fines, negative publicity, and in some cases business restrictions resulting from compliance failings and increased regulation, some major banks spending up to $500 million on due diligence programs. RegTech reduces this workload and cost of compliance significantly by offering state of the art automation of these often tedious & low-skill compliance processes, whilst also ensuring that high standards of compliance are adhered to.