)
A future-ready compliance solution
Using GenAI for Regulatory Watch & Compliance Monitoring
Customer story
In an era where regulatory complexity, administrative burdens, and talent shortages challenge the financial services sector, innovative solutions are making a difference such as Generative AI (GenAI), a transformative technology reshaping the industry by enhancing flexibility, agility, and operational efficiency. In a collaborative effort to harness this technology, consulting firm Reply Luxembourg and Crédit Agricole Indosuez Wealth Management have developed a unique partnership to deploy Generative AI on Regulatory Watch and Compliance Monitoring Plans processes.
The tool scans the regulators websites permanently. On the same day that a new or updated regulation is identified, the tool notifies the Compliance Officer of the regulatory evolution: it summarises the regulation and it proposes a reformulation of applicable controls in place. To avoid spamming, the tool applies filters to restrict updates to relevant regulatory scope.
The risk of missing a relevant regulatory evolution is reduced.
Centralization & digitalization of the compliance monitoring plan
The tool centralises all content relevant to the Compliance Monitoring Plan. No longer need for separate files or sharepoints. The tool is a Digital CMP. It includes all controls in place, their inherent and residual risks, the executors of the controls, the outcome of past controls, a track record of controls reformulation, and all applicable regulations.
The tool is also an orchestrator for Compliance to instruct other teams in executing controls, with tasks allocation, reminders and reporting functionalities.
Reduction of human efforts
The Artificial Intelligence of the tool allows the Compliance Officer to save time in identifying analysis of regulatory evolutions, in assessing their impact on existing controls, in defining newly required controls and in organising and monitoring the controls execution. The Compliance Officer remains in charge of reviewing and approving any proposal of the Artificial Intelligence.
The tool includes a GenAI Chat function, which can be used to go through, analyse, compare or summarise any regulation. All regulations from different regulators are accessible through the tool, reducing the need to consult the specific websites of applicable regulators.
The tool can be deployed in a few weeks only. Once deployed for an entity, it is easy to deploy the tool in additional entities of the same organisation, turning it into a group-level regulations and CMP hub, with adequate accessing and viewing user profiles.
Regulatory watch by GenAI
Analysis of a new regulation
Reformulation of the controls impacted by regulation officers
Notifications to relevant teams to apply new controls
The tool integrates all the components of the Compliance Monitoring Plan. It screens permanently the public websites of all public regulators, in search for new public regulatory evolution (new directives, laws, circulars, guidelines, Q&As ...). It's an intelligent scrapper.
Within a few seconds after detecting a new evolution, the tool: analyses & summarises; identifies the impacted control; proposes a redefinition; notifies the compliance officer.
The Compliance Officer remains a mandatory validator of any change. The tools embed a 4-eyes validation function. The Compliance Officer can amend, create, delete any new or existing content.
The tool includes a notifications function. This allows the Compliance Officer to inform & instruct anyone concerned by a regulatory evolution.
Generative AI's ability to automatically extract text data from multiple sources and generate meaningful content reduces human effort and minimizes regulatory risks. Example of use cases include regulatory watch activities, compliance monitoring plans, governance and regulatory reports (board meeting reports, branch reports, conducting officer reports, outsourcing oversight reports, internal audit reports, and risk logs, ...). By automating these recurrent operational tasks, the Generative AI alleviates the burden on Compliance, Risk Management, and Internal Audit teams, allowing them to concentrate on core responsibilities such as staying updated with evolving regulations, instructing on compliance measures, defining and mitigating risks, recommending corrective actions based on control outputs, analyzing service providers performance, and approving complex, high-risk cases.
Zest Reply
Zest Reply was born with the ambition to help customers deploy Enterprise levels Generative AI Solutions with a focus on Customer Engagement, Compliance Reporting and applications to Software Development. It has a specific interest in the adaptation and the continuous follow up of AI solutions vs the EU regulations. Its ambition is to become an indispensable partner, harnessing AI and innovative work methodologies to empower companies, innovate and stay aligned with the evolving market and technology. To achieve this objective, it leverages the AI Reply framework and experience in Constrained Chatbots, Retrieval Augmented Generation, LLM-Ops and Source code generation.
e*finance consulting Reply
e*finance consulting Reply is a distinguished member of the Reply Group, specializing in Management Consulting Services for Financial Institutions. They guide clients in defining and achieving strategic business policies through the latest business and distribution models, evolving operational processes and tools, and designing new products and services. Often, this involves embarking on a Digital Transformation journey. Innovation is embedded in their DNA, serving as a distinctive value and accelerator to enhance client performance. Their team of professionals, with diverse expertise, shares core values: passion for work, creativity, dynamism, and competence.