What demands does a compliance professional face?

At a time when terms like regulatory compliance, behavioral compliance, conflicts of interest, money laundering prevention, and anti-financial crime are increasingly part of the common lexicon, and when scandals in large companies across diverse sectors result from unethical conduct or weak (or non-existent) risk prevention and management, it’s important to ask: can organizations continue using the processes of the past to control new behaviors?

Managing compliance risk can be typified by the implementation of effective controls that prevent or mitigate legal and regulatory breaches. However, the increase in data and transactions carried out by consumers, as well as the complexity, demands, and constant growth of legislation and regulations applicable to each sector, have significantly increased the challenges faced by internal control areas of institutions, particularly those assigned to the compliance function.

Faced with these current challenges and the growing trend toward digitalization in new areas of activity, it is no longer feasible to believe that old, manual processes will remain effective.

Regardless of the degree of knowledge and professional experience that compliance professionals may have, it is humanly impossible to adequately monitor all necessary processes without the help of regulatory technology, such as data analysis tools, artificial intelligence, process automation, machine learning, and robotics. These technologies allow for continuous, real-time monitoring of activities and suspicious operations. The use of these digital tools to ensure legal and regulatory compliance is commonly referred to as digital compliance.

While regulatory technology and digital compliance present significant challenges, they also offer opportunities and solutions to effectively control institutional activities, given the enormous volume of data and the complexity of constantly changing regulations.

"Regardless of the degree of knowledge and professional experience that compliance professionals may have, it is humanly impossible to adequately monitor all necessary processes without the help of regulatory technology."

Artificial intelligence and machine learning enable IT platforms to analyze and process large-scale, repetitive tasks. Various solutions already on the market offer multiple options, from fully automated processes to hybrid models, where automatic data collection and extraction are paired with shared analysis, developed by technology and validated through human intervention.

This automation frees up human resources, removing the responsibility for repetitive, mechanical tasks so employees can focus on more strategic, value-added activities. Robotization in compliance not only accelerates processes but also enhances accuracy and reduces operational errors.

However, for this technology to be truly transformative, it is essential to continue investing in the training and ongoing development of compliance professionals. Only those with the right knowledge, skills, and motivation will be able to navigate the technical and highly specialized aspects of legal and regulatory obligations, as well as the practical aspects of compliance. These professionals will identify solutions that align with business practices, ensuring that institutions benefit from innovation and achieve the desired results. This will simplify processes, increase operational resilience, and enhance the conduct of organizations.

"Change is inevitable, transformation is by conscious choice" – HeatherAsh Amara.