MONACO: Financial Institutions Embrace Digital Transformation in Compliance Software
In the aftermath of two years of health crisis and accelerated digital transformation, regulatory compliance is poised to become a major player in technological innovations. For the Principality of Monaco, this represents an unprecedented opportunity for financial institutions to upgrade their compliance functions.
The State of Compliance in Monaco
Despite the obvious benefits of digitizing the compliance function, a staggering 80% of those subject to the LABFTC (Lutte Anti Blanchiment de Capitaux, Financement du Terrorisme et Corruption) in Monaco lack suitable IT tools. The cost of compliance remains high due to the manual nature of most tasks.
Solutions for Regulated Professionals
To address this issue, local RegTechs such as Equilateral.io are developing all-in-one solutions to help regulated professionals optimize and ensure their compliance functions. These cutting-edge solutions automate administrative tasks like:
- Document collection
- Identity verification
- Data retention
These solutions free up professionals to focus on high-value activities.
MONAFILE: A Game-Changer in KYC Document Collection
One example is the creation of MONAFILE, an Economic Interest Grouping aimed at pooling the collection of KYC (Know Your Customer) documents from clients of regulated professionals. This initiative, driven by several associations, chambers, and orders in Monaco, aims to reduce the burden on clients who are currently required to provide the same information multiple times when dealing with different financial institutions.
The Future of Compliance in Monaco
As the compliance function continues to evolve, the combination of innovative solutions offered by a growing ecosystem is expected to enable regulated professionals to achieve quality compliance at a lower cost. However, this transformation also requires reflection on the implementation of new governance and operational processes between various professions, including:
- Compliance
- Front office
- Others
The Role of AI, Blockchain, and Machine Learning
The future of compliance in Monaco looks promising, with AI, Blockchain, and Machine Learning poised to play a significant role in its development. As data storage capacity and security concerns become increasingly important, institutions will need to adapt to ensure the effectiveness of their processes in a sustainable manner.
Conclusion
“The era is now one of digitalization of the Compliance function,” concludes industry experts. With the Principality’s financial institutions at the forefront of this transformation, it remains to be seen how this shift will shape the future of compliance in Monaco.