The Regulatory Technology Handbook
The transformational potential of RegTech has been confirmed in recent years with US$1.2 billion invested in start-ups (2017) and an expected additional spending of US$100 billion by 2020. Regulatory technology will not only provide efficiency gains for compliance and reporting functions, it will radically change market structure and supervision. This book, the first of its kind, is providing a comprehensive and invaluable source of information aimed at corporates, regulators, compliance professionals, start-ups and policy makers.
The REGTECH Book brings into a single volume the curated industry expertise delivered by subject matter experts. It serves as a single reference point to understand the RegTech eco-system and its impact on the industry. Readers will learn foundational notions such as:
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The economic impact of digitization and datafication of regulation
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How new technologies (Artificial Intelligence, Blockchain) are applied to compliance
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Business use cases of RegTech for cost-reduction and new product origination
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The future regulatory landscape affecting financial institutions, technology companies and other industries
Edited by world-class academics and written by compliance professionals, regulators, entrepreneurs and business leaders, the RegTech Book represents an invaluable resource that paves the way for 21st century regulatory innovation.
By:
J Barberis,
Douglas W. Arner,
Ross P. Buckley
Imprint: John Wiley & Sons Inc
Country of Publication: United States
Dimensions:
Height: 242mm,
Width: 188mm,
Spine: 19mm
Weight: 884g
ISBN: 9781119362142
ISBN 10: 1119362148
Pages: 392
Publication Date: 01 August 2019
Audience:
Professional and scholarly
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Undergraduate
Format: Paperback
Publisher's Status: Active
A FinTech and RegTech Overview: Where We Have Come From and Where We Are Going vi About the Editors xii Acknowledgements xiv 1. Introduction What a RegTech Compliance Killer System Will Look Like 6 Technology-Enabled Collaborative Compliance 10 The Age of RegTech Disruption to the Status Quo Is Here 16 RegTech and Financial Crime Prevention 20 RegTech: Tackling Regulation with Innovation 26 Identities, the RegTech Holy Grail 30 2. The RegTech Landscape Islamic RegTech 38 How RegTech Could Help Determine the Future of Financial Services 44 Introducing the RegTech Quality Compass: The Five Factors of RegTech Quality 50 How Banks Are Managing Their Risk Through Technology and Market Infrastructure 55 RegTech and the Science of Regulation 58 GDPR and PSD2: Self-Sovereign Identity, Privacy, and Innovation 62 Rise of RegTech in the German Market 66 The Power of RegTech to Drive Cultural Change and Enhance Conduct Risk Management Across Banking 70 3. Regulatory Innovation and Sandboxes Discover the Innovative Technology Behind RegTech Leaders 80 Enabling RegTech Up Front: Unambiguous Machine-readable Regulation 85 Align Open Banking and Future-Proof RegTech for Regulators and Third-Party Providers to Deliver the Optimal Consumer Convenience and Protection 89 A Seat at the Table - Bringing the Voice of FinTech to the US Regulatory Process 93 Sandbox Games for RegTech 99 Legal Guidance for Entering the Sandbox and Taking Advantage of Cross-Border Cooperation Agreements 102 RegTech and the Sandbox Play, Innovate, and Protect! 106 4. A Call for Innovation or Disruption? Governance, Risk, and Compliance: Complex or Complicated? 118 Innovation or Disruption: Not Always Black and White 122 How to Use Digital Marketing Data in Regulated Industries 126 Invention Versus Reinvention 130 Making Regulation Machine Readable 134 Can We Digitize Know Your Client? 138 5. RegTech Investment and Compliance Spending Why a Substantial Investment in Financial Services RegTech Now Will Strategically Reduce Your Future Regulatory Compliance Costs 146 Old Tech + New Tech = RegTech: Excel Spreadsheets and End User Computing in a Regulated World 150 Will Financial Institutions Ever Achieve a 100% Compliance with Anti-Money Laundering and Combating the Financing of Terrorism Rules? 154 Merits and Demerits of a Shared Risk Engine 158 Spend on Compliance: A Necessary Evil orBusiness Enabler? 163 6. RegTech for Authorized Institutions RegTech Opportunities in a Post-4MLD/5MLD World 172 Passporting in the EU - Is an Opportunity Also a Problem? 177 What Do PSD2 and Similar Activities Mean for Banks and FinTech Start-ups? 181 7. RegTech from a Regulatory Perspective The Role of Anti-Money Laundering Law and Compliance in FinTech 190 Banking Supervision at a Crossroads - RegTech as the Regulators' Toolbox 195 FinReg, FinTech, and RegTech - Quo Vadis, EU? 199 The RegTech Landscape from a Regulator's Perspective 205 RegTech is for Regulators Too, and its Future is in Emerging Markets 210 8. Blockchain and AI in RegTech The ROI of RegTech 218 The Augmented Compliance Office 221 Dissolving Barriers: A Global Digital Trust Protocol 226 Can AI Really Disrupt Monitoring for Suspicious Activity? 231 Forging a Responsibility and Liability Framework in the AI Era for RegTech 235 Compliance with Data Protection Regulations by Applying the Blockchain Technology 246 Blockchains Are Diamonds' Best Friend: The Case for Supply Chain Transparency 250 9. RegTech Applicability Outside the Financial Services Industry Protecting Consumers and Enabling Innovation 260 RegTech Impact on the Private Security Industry 263 ArtTech: How Blockchain Can Improve Provenance 266 The Potential of RegTech in Improving the Effectiveness of Environmental Regulation 270 RegTech Applicability Outside the Financial Services Industry 274 Using RegTech as a Cross-Industry Digitization Tool 278 RegTech Unleashed: Discovering the Pathways Beyond Finance 282 RegTech Outside Finance: Four Options, One Clear Choice 287 RegTech: A Safe Bet for Tackling AML and Fraud in the Gambling Sector 292 10. Social Impact and Regulation The FinTech Ecosystem Between Legal Compliance and Social Dimension 300 The End Justifies the Means: Putting Social Purpose Back at the Heart of Banking and Financial Regulation 305 RegTech's Impact on Trust and Identity 310 How Technology Is Driving Financial Inclusion 314 Banking the Unbanked and Underbanked: RegTech as an Enabler for Financial Inclusion 318 Superhero Way: Enhancing Regulatory Supervision with Superpowers 323 11. The Future of RegTech Market Surveillance 2020 330 I Regulate, Therefore I Am? Regulating Humans' and Machines' Conduct and Culture 335 The Future of RegTech 340 From RegTech to TechReg - Regulation in a Decentralized World 344 Emerging Innovations in RegTech 348 List of Contributors 351 Index 358
JANOS BARBERIS is a Millennial in FinTech, recognized as a top-35 global FinTech leader. He founded FinTech HK, a thought leadership platform, and the SuperCharger a FinTech Accelerator that strategically leverages on Hong Kong as a gateway to Asia. In parallel, he sits on the advisory board of the World Economic Forum's FinTech Committee and is a PhD Candidate at Hong Kong University Law School. DOUGLAS W. ARNER is the Kerry Holdings Professor in Law at the University of Hong Kong and one of the world's leading experts on the intersection between finance, technology and regulation. He has advised on financial sector regulatory issues in markets across Africa, Asia, Australia, Europe and North America, with governments, international organizations including the Asian Development Bank and the Alliance for Financial Inclusion, and private sector institutions. Douglas has published 15 books and over 150 articles, chapters and papers on related subjects. He led the development of the world's largest massive open online course (MOOC): Introduction to FinTech, launched on edX in May 2018, now with over 35,000 learners spanning every country in the world. ROSS P. BUCKLEY is the KPMG Law King & Wood Mallesons Professor of Disruptive Innovation, and a Scientia Professor, at UNSW Sydney. His research focus is on FinTech, RegTech and blockchain. He chairs the Digital Finance Advisory Panel of the Australian Securities and Investments Commission (ASIC). He consults regularly to the Asian Development Bank, and has consulted to government departments in 10 countries, including Australia and the US. He has twice been a Fulbright Scholar, at Yale and Duke.
