RegTech adoption by Financial institutions is gaining ground as its utility is becoming apparent. And, it is getting a boost because of regulators encouraging the greater use of technology to improve efficiency.
Last week we published an article about the Philippine regulator BSP encouraging the financial industry to embrace technology. Similarly, the Malaysian regulator, The Securities Commission Malaysia (SC), is also involved in engaging with market participants and technical experts to access how to best use RegTech and reap its benefits, as per an article published in www.theedgemarkets.com.
Here is an excerpt from the same:
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The Securities Commission Malaysia (SC) is working on encouraging greater regulatory technology (RegTech) adoption among participants and facilitating growth in RegTech innovation given its potential.
“The SC aims to see greater use of data, analytics and technology by market participants to improve efficiency, maintain market integrity and protect investors,” it said in its Capital Market Masterplan 3 (CMP3).
RegTech involves solutions that enable a more efficient and effective approach towards managing risks, client onboarding as well as regulatory reporting, compliance and monitoring.
Some examples of RegTech commonly used for financial intermediaries are seen in the areas of Know Your Customer (KYC), transaction monitoring, anti-money laundering (AML) screening, fraud prevention, compliance risk analysis and regulatory reporting.
The SC said that RegTech solutions demonstrate benefits that can enhance the capital market’s overall efficiency in mitigating material risks and maintaining market integrity. It believes that RegTech can play a role in enabling market participants to self-monitor compliance requirements and detect lapses in a timely manner as the SC looks to promote greater self-regulation within the capital market.”
You can read the complete article using this link: CMP3: SC looking to encourage RegTech adoption and facilitate its innovation | The Edge Markets
