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🇮🇳 India Let's "#ComplianceKaro" is The Must Mantra ! Many Fintech companies keeps saying We are building Bank of Future , Nextgen Bank , Neo Bank etc. and ,Well That's Great gesture. But Bottomline is to build with #Compliance - As Banker , In 1 Year I had under gone as many Audits - Internal Audit , External Stakeholders , RBI Audits ; Practically every Customer services is supported by Process Note signed-off by Compliance officer and we need to validate this with all sorts of audits. 📢 Join us for better compliance practices @  #Whatsapp - https://lnkd.in/dvc8ZDZ6 #Linkedin - https://lnkd.in/dWPygisN 📢 Question for Fintechs - Do you have Process note for each Service to be audited ? 1. Statutory Audit 2. Concurrent Audit 3. Information System (IS) Audit 4. Internal Compliance Audit 5. Asset Quality Review (AQR) 6. Fraud Detection and Prevention #Audit 7. Credit Information Companies (CICs) Audit 8. Payment Systems Audit 9. RBS Audit 10. RBI IT , Off-site Surveillance and Inspection " ComplianceKaro" is not just a mantra but a strategic imperative for the financial industry. The way forward involves a holistic approach to compliance, integrating #technology, customer-centricity, and adherence to RBI guidelines" #Banks ,#Fintechs , #NBFCs, Co-Op Banks to follow - Compliance i.e. The act of adhering to established rules, regulations, laws, and standards within a given industry or jurisdiction 📌 Customer Data Protection : Deploy advanced encryption, access controls, and regular audits to safeguard customer information. 📌 Anti-Money Laundering (AML) and Know Your Customer (KYC) : Conduct thorough customer due diligence, employ transaction monitoring systems, and report suspicious activities to regulatory authorities. 📌 Digital Payment Security : Implement secure payment gateways, multi-factor authentication, and real-time monitoring to ensure the integrity of digital transactions. 📌 Capital Adequacy and Prudential Norms : Ensure sufficient capital reserves, follow asset classification norms, and adhere to income recognition standards. 📌 Technology Risk Management :Conduct regular cybersecurity audits, implement robust risk mitigation strategies, and ensure resilience against technological threats. 📌 Credit Risk Management Framework :Assess credit risk effectively, monitor loan quality, and implement strategies for prudent lending practices. 📌 Regular Training and Capacity Building : To keep workforce updated on regulatory changes, technological advancements, and evolving industry practices. 🎯 Bottomline - "Continuous self-assessment, collaboration with regulatory bodies, and proactive adoption of evolving regulations will be key in building a resilient and compliant #financialecosystem in #India. The focus should remain on ethical practices, customer protection, and leveraging technological advancements to enhance the efficiency and security of financial services " - Prasanna Lohar

How KYB regulations shape the future of banking and FinTech: KYB checks are essential for banks and FinTech companies when working with corporate clients. Here's why KYB is so important: Regulatory compliance: ...

Great article illustrating the increasing responsibilities for banks partnering with third parties/FinTechs by regulators. The article highlights that regulators hold banks accountable for the actions of their third-party partners including fintechs as if the bank itself performed those actions. The regulatory scrutiny does not end there - due diligence transforms into active oversight and monitoring once the third-party partnership starts. If you are a bank evaluating these partnerships to grow your business it is critical to consider these risks: ⚙ Operational Risk - Third parties can disrupt a bank's operations if they fail to deliver services reliably ⚖ Legal and Compliance Risk - Banks need to provide evidence that they are actively overseeing and managing these relationships by implementing controls and ensuring compliance with applicable laws. 👨💼 Human Capital Risk - Banks need to evaluate the appropriate amount of resources to dedicate to adequate oversight and management of these partnerships. While third parties offer advantages, banks remain responsible for all activities conducted through them in a safe, sound and compliant manner. Robust third-party risk management throughout the lifecycle - due diligence, monitoring, and termination - is essential to mitigate these risks https://lnkd.in/eTSWAhCh #FinancialServices #MarketingCompliance #Banking #FinTech #RegulatoryCompliance

Embracing Multi-layer Screening Is No Longer A Choice, But A Necessity. The spotlight is firmly on #fintech and #financialinstitutions (FI), with the top regulatory authority in India clamping down on non-compliance with #KnowYourCustomer (KYC) and #AntiMoneyLaundering (AML) regulations. Traditional methods are falling short, leaving #banks and #FI vulnerable to costly penalties and reputation damage. With a staggering 88% increase in penalties in the last three years (https://lnkd.in/g79Byknw), simple name screening, while important, doesn’t cut it anymore. It’s time FIs raised the compliance bar. What they need is:  → Global Watchlist Screening that scans new and current customers against global and local watchlists → Ultimate Beneficiary Ownership (UBO) verification during bank account openings. These solutions help banks and FIs with proactive, robust compliance, becoming an impenetrable shield against threats. In the age of escalating penalties and unforgiving scrutiny, there's no room for half-measures. Embrace the power of multi-layered screening, relied on by the leading banks in India: https://lnkd.in/gQCzr-wE The Economic Times #KYC #AML #Compliance #MultiLayeredScreening #RBI

Financial regulators worldwide are intensifying scrutiny on Payments Service Providers, issuers, and processors for AML compliance. The surge in competition due to initiatives like Open Banking and PSD2 has led to an influx of fintechs lacking robust AML processes. To navigate this landscape, our Client Solutions Consultant Connor McCauley believes embracing Compliance as a Service (CaaS) is not just a regulatory necessity but a strategic move for growth. Learn how CaaS can optimise customer experience and reduce payment friction: https://hubs.li/Q02jhTj70 #AML #Payments #Risk #Compliance

𝗥𝗕𝗜 𝗜𝗺𝗽𝗹𝗲𝗺𝗲𝗻𝘁𝘀 𝗦𝘁𝗿𝗶𝗻𝗴𝗲𝗻𝘁 𝗞𝗬𝗖 𝗖𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲 𝗠𝗲𝗮𝘀𝘂𝗿𝗲𝘀: A Call to Action for Fintech and Banking Sectors In a proactive step towards bolstering financial security, the Reserve Bank of India has heightened its vigilance over Know Your Customer (KYC) protocols, implementing stricter compliance regulations for the fintech and banking sectors. This strategic adjustment emphasizes the critical need for resilient KYC procedures in fortifying defenses against fraud and money laundering activities. Leverage Probe42 for KYC and compliance integrity. Safeguard Your Operations. Explore here: Probe42.in #KYC #Compliance #DueDiligence #Probe42 #BusinessIntelligence #RBI

It's clear that the Reserve Bank of India (#RBI) has recently taken significant regulatory actions against various financial institutions, including cooperative banks, commercial banks, and fintech companies like Paytm, for non-compliance with KYC and AML regulations. These actions underline the RBI's commitment to enforcing strict compliance standards to ensure the integrity and security of the financial system in India. Financial institutions of all sizes are being scrutinized for their adherence to regulatory requirements, with substantial penalties being imposed for lapses in KYC and AML processes. https://lnkd.in/g_jMc4Ye https://lnkd.in/gyjD6c-n https://lnkd.in/g-MWKs4Y

🤔 Our latest blog delves into Know Your Business (KYB) regulations and processes for banks and fintechs. 🛡️ KYB is a critical element of compliance, risk management, reputation protection, and building trust. By utilising comprehensive KYB solutions, financial institutions can streamline compliance and ensure all corporate clients are legitimate and trustworthy. 👇 Click the link below to check it out! https://hubs.li/Q02z3qmG0 #knowyourbusiness #compliance #fintech

In simple terms, KYC means Know Your Customer and is a process that all financial institutions are required to carry out in order to identify and get more personal information like name, phone number, email address and home address of their customers. According to several sources familiar with the incident, the Central Bank of Nigeria (CBN) yesterday, directed four fintechs which include Opay, Moniepoint, Kuda and Palmpay, to halt the onboarding of new customers over the Know-Your-Customer - KYC issues till further notice. Recall the apex bank in a circular dated December 1, 2023 to financial institutions directed that all funded accounts or wallets without BVN or NIN will be placed on “Post No Debit or Credit effective March 1, 2024. In order to meet the CBN deadline on enforcement of the KYC, some leading fintechs like Palmpay and Opay started sending messages to their customers to upgrade their KYC details. Click on link to continue reading: https://lnkd.in/d_SSsWK8

In the ever-evolving landscape of banking and financial institutions, compliance audits play a pivotal role in ensuring adherence to regulatory frameworks and industry standards. These audits, ranging from regulatory audits to ISO certifications, are essential components of a robust governance framework, aiming to uphold trust, integrity, and efficiency within the sector. 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐨𝐫𝐲 𝐀𝐮𝐝𝐢𝐭𝐬 𝐢𝐧 𝐈𝐧𝐝𝐢𝐚: 𝐀 𝐂𝐥𝐨𝐬𝐞𝐫 𝐋𝐨𝐨𝐤   In the Indian banking landscape, regulatory audits hold significant importance due to the stringent regulatory environment governed by the RBI and other regulatory authorities. These audits encompass a range of activities aimed at ensuring compliance with regulatory mandates and industry best practices. Key aspects of regulatory audits include:   𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐨𝐫𝐲 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐀𝐬𝐬𝐞𝐬𝐬𝐦𝐞𝐧𝐭: Evaluating the bank's compliance with RBI guidelines, SEBI regulations, Anti-Money Laundering (AML) laws, and other statutory requirements. 𝐑𝐢𝐬𝐤-𝐁𝐚𝐬𝐞𝐝 𝐀𝐮𝐝𝐢𝐭𝐬: Conducting audits based on risk assessments to identify and mitigate potential risks across various banking functions. 𝐑𝐞𝐯𝐢𝐞𝐰 𝐨𝐟 𝐈𝐧𝐭𝐞𝐫𝐧𝐚𝐥 𝐂𝐨𝐧𝐭𝐫𝐨𝐥𝐬: Assessing the effectiveness of internal control mechanisms to prevent fraud, errors, and non-compliance issues. 𝐃𝐚𝐭𝐚 𝐒𝐞𝐜𝐮𝐫𝐢𝐭𝐲 𝐚𝐧𝐝 𝐏𝐫𝐢𝐯𝐚𝐜𝐲: Ensuring the protection of customer data, confidentiality, and adherence to data privacy regulations such as the Personal Data Protection Bill.   The ultimate goal of compliance and regulatory audits in banks is to drive tangible outcomes that contribute to the overall resilience, efficiency, and trustworthiness of the banking sector. These outcomes include: 𝐄𝐧𝐡𝐚𝐧𝐜𝐞𝐝 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐨𝐫𝐲 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐏𝐫𝐨𝐚𝐜𝐭𝐢𝐯𝐞 𝐑𝐢𝐬𝐤 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭 𝐒𝐭𝐫𝐞𝐚𝐦𝐥𝐢𝐧𝐞𝐝 𝐏𝐫𝐨𝐜𝐞𝐬𝐬𝐞𝐬 𝐑𝐨𝐛𝐮𝐬𝐭 𝐆𝐨𝐯𝐞𝐫𝐧𝐚𝐧𝐜𝐞 𝐅𝐫𝐚𝐦𝐞𝐰𝐨𝐫𝐤 𝐇𝐞𝐢𝐠𝐡𝐭𝐞𝐧𝐞𝐝 𝐒𝐞𝐜𝐮𝐫𝐢𝐭𝐲 𝐌𝐞𝐚𝐬𝐮𝐫𝐞𝐬   In today's digital age, where technology continues to reshape the banking landscape, the significance of robust compliance and governance frameworks cannot be overstated. Therefore, it is important for banks to stay proactive in their approach to regulatory and internal compliance auditing, leveraging technology-driven solutions to streamline processes, enhance security measures, and adapt to evolving regulatory mandates. The Digital Fifth can assist Banks, NBFCs and Fintechs to adhere to and stay compliant with all applicable regulatory guidelines. Talk to us: https://lnkd.in/dE9Mzuef Sameer Singh Jaini | Shashank Shekhar | Sreekant Rudrabhatla | Vikrant Kulkarni | Deepak Sai    #BankingCompliance #RegulatoryAudits #RiskManagement #Governance #DataSecurity #BankingIndustry #FinancialServices #ComplianceManagement