Welcome back to the RegTech Supply Chain Series! This series of posts helps make sense of the RegTech industry; the different sectors, what tools are available, and how they help satisfy compliance requirements and challenges. In the first part of the series we looked at onboarding tools, an area that Trulioo is very familiar with.
We have tons of regulations and technologies to consider outside of just the onboarding process. We now move on to Part 2 where we explore monitoring tools. As we introduced in Part 1 of this series, one way to catalogue all of these tools is by business needs, specifically classifying based on timeframes of the use of the RegTech tool.
Let’s review, what are different timeframes across a process lifecycle?
- Onboarding
Tools for the first step of signing up a customer. These are often one time or for new cases (ex. ONC, CDD, and KYC). - Monitoring
Tools for analyzing performance on an ongoing basis. - Detection
Tools for flagging potential events, such as risk or fraud. These are occasional in nature but require the utmost of attention. - Reporting
Tools to warehouse, organize and send data to regulators at scheduled intervals. - Process Tools and Controls
Tools and controls that operate over the entire process lifecycle
Monitoring
After the initial onboarding process, compliance is not complete. There’s a necessity for monitoring on an ongoing basis. Monitoring refers to the analysis of continual, ongoing activities to ensure activities remain in compliance.
There are various activities to keep track of, such as exceeding thresholds, suspicious activities, change of status, recording of communications, surveillance of employees, watchlists, market trends, new regulations, trade data and various other market and transaction monitoring needs.
For financial institutions (FIs), even after AML/KYC (Anti-Money Laundering/Know Your Customer) regulations are met when signing up new customers, continued monitoring is critical long after initial sign up. FIs must monitor activity to ensure fraud is not committed, or that money laundering or terrorist financing funds enter their system.
Trulioo supports the monitoring process after initial onboarding, as we focus on providing the capabilities to screen results for global watch lists. We check data that a customer provides against our watch list data sources to see if the information matches. By performing these checks, FIs are then assured that they are in compliance with their regulatory obligations for this stage on the process.
Here are some other tools that are useful in the monitoring stage:
| Company Name | Category | Description |
| Beyond Enterprise | Communications Monitoring | Helps firms assess the status of their communications monitoring program |
| CheckRecipient | Communications Monitoring | Intelligent outgoing email protection |
| Enepath | Communications Monitoring | Integrated verbal communication solution for trading desks |
| Novastone | Communications Monitoring | Secure messaging tool for communication with clients |
| QumRam | Communications Monitoring | Automatic digital activity recorder |
| RecordSure | Communications Monitoring | Records sales calls and identifies red flags |
| Abacus/Transactions | Transaction Monitoring and Market Surveillance | Solution for transaction-based regulatory reporting |
| Alpha Trade Cycle Management | Transaction Monitoring and Market Surveillance | Trade cycle management software |
| Alto | Transaction Monitoring and Market Surveillance | Identification of unusual and significant cash flows in investment funds under UCITS and AIFMD |
| Ancoa | Transaction Monitoring and Market Surveillance | Market surveillance solution based on contextual data analytics to prevent risks of market abuse, fraud and operational shortcomings |
| Behavox | Transaction Monitoring and Market Surveillance | Employee surveillance solution |
| Chainalysis | Transaction Monitoring and Market Surveillance | Market surveillance/fraud detection on bitcoin transactions |
| ComplySci | Transaction Monitoring and Market Surveillance | Compliance management workflows based on each employee’s risk profile |
| Cube Content Cloud | Transaction Monitoring and Market Surveillance | Information governance solution to manage records and data compliance requirements |
| Digital Reasoning | Transaction Monitoring and Market Surveillance | Contextual analysis across structured and unstructured data |
| Droit | Transaction Monitoring and Market Surveillance | Market logic and regulatory rule based trading decision engines |
| Elliptic | Transaction Monitoring and Market Surveillance | Identification of illicit transaction activity on the Bitcoin blockchain |
| IdentityMind Global | Transaction Monitoring and Market Surveillance | Risk management solutions to track entities involved in every transaction |
| Isignthis | Transaction Monitoring and Market Surveillance | Real time electronic verification of payment instruments with KYC identification of customers, delivering AML/CFT KYC, payments and transaction monitoring |
| Message Automation | Transaction Monitoring and Market Surveillance | Post trade control solutions |
| Monetsu | Transaction Monitoring and Market Surveillance | Solutions for crypto-currencies using an independent approach to blockchain |
| Neurensic | Transaction Monitoring and Market Surveillance | Identifies high-risk trading behavior from previous market abuse instances |
| Neuroware | Transaction Monitoring and Market Surveillance | Blockchain and distributed ledger solutions. |
| OpenGamma | Transaction Monitoring and Market Surveillance | Metrics to drive derivatives trading and clearing cost |
| Paymentscompliance | Transaction Monitoring and Market Surveillance | Publication of legal and regulatory changes affecting the global and emerging payments communities |
| Polycoin | Transaction Monitoring and Market Surveillance | BitCoin transaction monitoring |
| RedOwl Analytics | Transaction Monitoring and Market Surveillance | Detects and deters unwanted/illegal behaviors |
| Scorechain | Transaction Monitoring and Market Surveillance | Business intelligence and big data for the blockchain technologies |
| Skry | Transaction Monitoring and Market Surveillance | Blockchain analytics and intelligence |
| SnapSwap | Transaction Monitoring and Market Surveillance | Innovative financial products based on cryptographic technologies, cryptocurrencies, and blockchain |
| Sybenetix | Transaction Monitoring and Market Surveillance | Market surveillance solution based on combination of contextual data analytics and behavioral science |
| Sysnet Global Solutions | Transaction Monitoring and Market Surveillance | Cyber security and compliance solutions |
| TradeFlow | Transaction Monitoring and Market Surveillance | Track trade data over legacy infrastructure and risk alerting |
| Trapets | Transaction Monitoring and Market Surveillance | Detection of insider trading and market abuse |
| Voitrax | Transaction Monitoring and Market Surveillance | Tracks trader communications to identify potential market abuse |
On the next RegTech Supply Chain post we’ll look at detection tools; what are they, how they can help your business and a survey of suppliers.
As you can see from the list, there are many options to choose from, and the key to picking the solution that is right for your product or service is to understand your current business needs and anticipate and prepare for the regulatory challenges on the horizon.
Market Fintech conducted a RegTech Performance Report where they ranked top performing RegTech suppliers from around the world. If you’re interested in Trulioo’s approach to customer monitoring and how we can help you comply with cross-border requirements with speed, agility and scalability, check out our Product Brochures page.