As the COVID-19 pandemic rolls into its second full year, it’s reasonable to reflect on the massive changes the virus has wrought. But for professionals working in compliance, the reality is the past 24 months of change may only be the beginning thanks to the introduction of new laws, rules and regulations with which they must contend.
To cope with the pace of changes and ensure they avoid running afoul of the law, more organizations are adopting technological solutions, including automation and AI, to keep up. Global RegTech provider Clausematch is projecting the top compliance technology trends for 2022 in its new analysis.
A few highlights of Clausematch’s predictions:
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Regulation is expected to be introduced to cryptocurrency activities due to the increased threat of money laundering through digital assets, and a roadmap to provide greater clarity on rules and regulations around cryptocurrency has been announced by the Federal Reserve.
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In 2022, compliance teams will be laser-focused on obtaining only the best, most trusted data. Now that there is an abundance of data, unlike previous years, it becomes important to surface data that is accurate, meaningful and purposeful.
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There will be a further need to implement InfoSec beyond just the organization, as there is an increase in outsourcing and risk. With this, there is an expected 33 percent increase in businesses prioritizing RegTech in their 2022 budgets, while 42 percent say budgets will stay the same. Increased risk means increased fines, Amazon received a massive GDPR fine in July 2021, followed by WhatsApp receiving a GDPR fine months later. Together, they constitute the first- and second-biggest EU privacy fines in history, totaling just over $1 billion.
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KYC (know your customer) and AML (anti-money laundering) regulation is being introduced to cryptocurrency, especially due to the increasing incidents of money laundering through cryptocurrency. Along with this, there will be more information being provided, resulting in increased clarity between regulators and organizations.
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