The Evolution of Compliance Monitoring: From Niche to Mainstream
As we begin the new year, let’s take a look at the top 3 compliance trends that you and your team can expect to see in 2023.
1. Loan staff data scientists coming to your compliance department.
As 2022 showed us with recent DOJ settlements, companies who invest in monitoring and anti-fraud/anti-corruption technology (whether in-house or commercial) will be looked among more favorably than those who don’t.
2. Bringing compliance monitoring technology in house, cost effectively.
Anheuser-Busch InBev was one of the first among global organizations to bring third-party transaction monitoring in house over five years ago. However, that endeavor was quite expensive and cost several millions of dollars to implement. Now, with advances in technology and automation, companies can bring in leading compliance monitoring technology for a fraction of the costs – e.g., less than the cost of one full time senior compliance professional.
3. From many, there will be one (algorithm).
In December of 2023, a not-for-profit foundation out or MIT named Integrity Distributed released its first anti-corruption research report demonstrating that when companies collaborate around third-party payments and the respective attributes of high-risk transactions, the results indicate that the predictive value of identifying a potentially improper payment is 25% greater when compared to results where each company’s model is performed in isolation.
Top 3 Compliance Trends To Watch For In 2023
As we begin the new year, let’s take a look at the top 3 compliance trends that you and your team can expect to see in 2023.
1. Loan staff data scientists coming to your compliance department.
As 2022 showed us with recent DOJ settlements, companies who invest in monitoring and anti-fraud/anti-corruption technology (whether in-house or commercial) will be looked among more favorably than those who don’t.
2. Bringing compliance monitoring technology in house, cost effectively.
Anheuser-Busch InBev was one of the first among global organizations to bring third-party transaction monitoring in house over five years ago. However, that endeavor was quite expensive and cost several millions of dollars to implement. Now, with advances in technology and automation, companies can bring in leading compliance monitoring technology for a fraction of the costs – e.g., less than the cost of one full time senior compliance professional.
3. From many, there will be one (algorithm).
In December of 2023, a not-for-profit foundation out or MIT named Integrity Distributed released its first anti-corruption research report demonstrating that when companies collaborate around third-party payments and the respective attributes of high-risk transactions, the results indicate that the predictive value of identifying a potentially improper payment is 25% greater when compared to results where each company’s model is performed in isolation.
Compliance Innovation Updates – December 2022
In the spirit of fighting global corruption, Kona AI also released the MIT / Integrity Distributed Anti-Corruption research paper on a global data sharing consortium. The research was generously funded by the AB InBev Foundation and brought together compliance, forensic accounting technology and data science professionals from Kona AI, MIT, Harvard Business School, eight Fortune 500 companies and four leading AmLaw 100 Law firms who focus on white-collar crime.
Kona AI and MIT Anticorruption White Paper
Our latest Anticorruption research in collaboration with MIT is now available. Click here to download.
Machine Learning Meets Compliance & Anti-Corruption — See What’s On DOJ’s Mind
Corruption risk is still top of mind with the regulators. Digitizing the approach is proving cost effective and reliable.
Reshaping Compliance – New DOJ Fraud Section Expert Takes Over
A fantastic new article written by Hui Chen in Law360 perfectly encapsulates how Matt Galvin will reshape Compliance in his new role at the Department of Justice Fraud Section. Matt’s work at BrewRIGHT “changed the game” for Chief Ethics & Compliance Officers. And now he’s the “referee”.
Out With The Old, In With Kona
Corruption risk is still top of mind with the regulators. Digitizing the approach is proving cost effective and reliable.
