RegTech Weekly Roundup

RegTech Weekly Roundup

The RegTech industry is now on the cusp of ‘RegTech 3.0’ – a shift away from ‘know your customer’ to ‘know your data’ compliance practices...

IA Fintech Member Insights: Clausematch 


Good morning! 

I hope you had a great weekend!

In this week’s RegTech X, data is a major theme. According to one industry expert, the RegTech industry is now on the cusp of ‘RegTech 3.0’ – a shift away from ‘know your customer’ to ‘know your data’ compliance practices. Meanwhile, the European Union is examining the creation of a single data market that would challenge large technology companies such as Google and Facebook.

Banking technology is another focus of this week’s digest. In an interesting development, both JP Morgan and Goldman Sachs have overhauled their technology teams recently in an effort to become more digital.

You’ll also find news in relation to the Financial Conduct Authority, crypto regulation, AML, and sustainable finance regulation.

Read on to find out more. ☕

Have a great week!


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Regulator UK 

The Financial Conduct Authority (FCA) has told FinTech start-up Zeux to take down its UK advertisements offering a 5% interest rate. Zeux is licensed and regulated by the FCA, however, its flagship product is an unprotected cryptocurrency investment product that is not covered by the Financial Services Compensation Scheme. (This is Money) 3 mins

The FCA has added two new non-executive directors to its board to replace Amelia Fletcher and Catherine Bradley whose terms are ending this year. Jeannette Lichner and Bernadette Conroy will serve three-year terms beginning on April 1 and 1 August 1 respectively. (FT Adviser) 2 mins

Meanwhile, the FCA is also looking for a cryptocurrency expert for its Enforcement & Market Oversight (EMO) division. The regulator has been responsible for 5MLD regulation of the crypto sector since 20 January. (Token Post) 2 mins

The FCA has warned company administrators and claims management companies after discovering that some administrators have tried to sell customer data to claims handlers. It said that customers were unlikely to have given their consent for their data to be shared and that doing so may be unlawful. (FT Adviser) 2 mins

Regulator EU

The European Securities and Markets Authority (ESMA) has published its Strategy on Sustainable Finance. The strategy sets out how the regulator will place sustainability at the core of its activities by embedding Environmental, Social, and Governance (ESG) factors into its work. Key priorities include transparency obligations, risk analysis on green bonds, ESG investing, convergence of national supervisory practices on ESG factors, taxonomy, and supervision. (Finextra) 2 mins

The European Banking Authority (EBA) has issued a public consultation on revised guidelines on money laundering and terrorist financing (ML/TF) risk factors. The regulator has proposed key changes in the revised guidelines including new guidance on compliance with the provisions on enhanced customer due diligence CDD related to high-risk third countries. (Regulation Asia) 2 mins

The European Union is examining the creation of a single data market that would challenge large technology companies such as Google and Facebook. A single European data space would include new rules governing cross-border use and data interoperability. (Pymnts) 2 mins

Regulator US

The US Securities and Exchange Commission (SEC) is proposing changes to rules governing how companies disclose financial information. The proposal reflects the SEC’s general shift from strict guidance toward principles-based disclosures that aim to simplify information for companies and investors. (WSJ) 3 mins

In another SEC proposal, the regulator has said that tech startups may be able to raise money using digital tokens under current law. However, under the proposal, companies will have to create a transition plan after a three-year period that illustrates whether the digital tokens will be able to be traded by potential users, programmers, and participants in the network. (Pymnts) 2 mins

Regulation Asia

The Monetary Authority of Singapore (MAS) and the US Treasury have expressed support for financial institution data transfer without the need for data localisation. In a joint statement, MAS and the US Treasury said that data mobility in financial services supports economic growth and the development of innovative financial services and also benefits risk management and compliance programmes. ( 2 mins

Regulation Australia  

Major banks in Australia have lobbied against proposed changes to Australia’s Banking Executive Accountability Regime (BEAR). The proposed changes could see banking executives face fines of up to AUD $1.05 million for each breach. (AFR) 2 mins


The RegTech industry is now on the cusp of ‘RegTech 3.0’ – a move away from ‘know your customer’ to ‘know your data’ compliance practices. As a result, businesses are increasingly seeing RegTech investment less as a cost of doing business and more as a business enabler. (Finextra) 3 mins

RegTech specialist RIMES has just announced a major investment deal with global investment firm EQT. The investment will enable RIMES to expand its RegTech and data management solutions and extend its existing partnerships and capabilities. RIMES currently works with more than 350 asset managers, owners, servicers, and banks, and 500 data partners globally. (Finextra) 2 mins

Regulatory planning specialist Corlytics is expecting to receive a €10 million cash injection by the end of the first quarter, after enjoying its most successful year to date. The RegTech company, which uses artificial intelligence to measure and predict regulatory outcomes and impact, has recently branched out beyond banking to add asset managers, payments providers, and insurance giants to its client list, tripling year-on-year revenues. (Finextra) 2 mins

RegTech firm Encompass has been awarded a £2 million grant from Scottish Enterprise to develop an artificial intelligence (AI) engine to accompany its KYC product offering. Encompass says the AI development will help its customers with risk management. (Finextra) 1 min


Goldman Sachs is in advanced talks with Amazon to offer small business loans in the US, according to a recent report in the Financial Times. The project could go live as soon as March, according to the report. (Quartz) 2 mins

For challenger banks to survive, they will need to evolve and turn to traditional financial services to make profits, says Daniel Döderlein, CEO of mobile payments company Auka. Döderlein points out that currently, the majority of digital bank revenue comes from the money received from card networks, as well as from the interchange made when customers spend with cards. (Forbes) 3 mins


Investment in application programming interfaces (APIs) and cloud computing are two banking trends to expect in 2020, says FinTech expert Ron Shevlin. Shevlin says that machine learning is gaining banks’ interest, however, he expects few firms to actually invest. (Forbes) 3 mins

Specialist provider of technological solutions Auriga also believes that cloud computing will be a big trend in financial services in 2020. Other key trends anticipated by Auriga include the leveraging of artificial intelligence to gain customer insights, and the use of video conferencing to enhance customer relationships. (Bobsguide) 3 mins

Both JP Morgan and Goldman Sachs are overhauling their technology teams in an effort to become more digital. JP Morgan’s focus is on technology that makes it easier for customers to open accounts and manage their money without having to walk into a branch. (American Banker) 2 mins


The International Compliance Association (ICA) has recently launched a new AML course – the ICA Specialist Certificate in Money Laundering Risks in New Technology. The course is designed to focus on the increasing impact of technology and the advantages it brings but also the ways in which it can be exploited by criminals. (Finextra) 2 mins

The amount of criminal money being laundered through seemingly legitimate trade transactions is “large and growing”, according to new research from the US Government Accountability Office (GAO). The GAO says that the most common form of trade-based money laundering (TBML) is the under or over-invoicing for shipments of goods. (GTR) 3 mins


For most organisations, compliance is seen as the cost of doing business. However, if executed strategically, compliance can improve a company’s overall security framework while also shortening sales cycles and opening the door to new opportunities, writes Lindsey Hardy, compliance manager at Threat Stack. ( 3 mins

robust regulatory system is the secret to the UK’s success as a major financial hub, writes MP Bim Afolami. However, Afolami points out that the UK can’t afford to stand still. (City AM) 2 mins

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