Regulatory Compliance

The Challenge

In 2020, several major banks, including JPMorgan Chase and Citigroup, faced regulatory scrutiny and penalties for various compliance failures, such as anti-money laundering (AML) violations and fraudulent activities. These incidents underscored the critical need for strong compliance frameworks within the financial sector.

Meeting regulatory requirements, such as those stipulated in Dodd-Frank, GDPR, and Basel III, poses considerable financial and operational obstacles for financial institutions. Despite the burden, they must effectively juggle compliance efforts with the ongoing imperative of maintaining operational efficiency.

The Solution

Capsifi helps by providing a clear line of sight from relevant legislation and policies, through to the organizational controls that enforce them aligning to investment into the operating model and initiatives for change. In this way, evidence of compliance becomes incidental, alleviating what is traditionally a resource-intensive and error-prone activity. With Capsifi, regulatory frameworks become another lens through which the operating model can be assessed and the cost of implementing those compliance frameworks ascertained.

From a data perspective, information objects can be classified to identify their level of risk which may then be tracked through every system, process and role that is involved in handling that data, providing clear and indisputable lineage of data risk.

Here’s some practical ways the Capsifi platform can address and resolve these industry-wide challenges:

• Establish a clear line of sight from legislation and policy to controls, business rules, and operating model elements
• Establish a clear line of sight from legislation and policy to controls, initiatives, or projects, and epics (including costs)
• Use data object risk classification based on various risk frameworks, with calculated attributes used to deduce the risk associated with operating model elements handling that data