In the ever-evolving landscape of digital systems, the issue of audit trail and traceability has taken centre stage for global regulators. A recent whitepaper from RegTech firm Custodia shed light on the persistent challenges faced by regulated industries, emphasising the importance of capturing context for compliance with market abuse rules. FinTech Global delved into the complexities surrounding audit trail and traceability and discusses why Custodia’s CC1 offering may be a solution.
A critical aspect of compliance is the proper authorisation of communication channels. The unauthorised use of off-channel communications can jeopardise documentation in approved channels, leaving compliance teams questioning the completeness of captured business-related conversations. CC1, in response to the evolving communication landscape, recently launched CC1 Messaging, showcasing its commitment to adaptability by capturing data from platforms like WhatsApp and iMessage. This innovation ensures that all communication data remains centralised within a single, user-friendly service.
However, the digital transformation within financial institutions can sometimes fall short when it comes to accurately matching conversations to their corresponding recordings. CC1, fortified with an assurance layer, offers near-real-time reconciliation, guaranteeing consistent and accurate records. This feature directly addresses compliance challenges related to archiving records, aligning seamlessly with stringent regulatory requirements.
Data concerns
Another area for concern is regulated digital data. Within the financial sector, it often lacks standardised documentation, leading to potential variations across systems. CC1 tackles this issue by capturing, centralising, and normalising data, creating a common repository or data lake. This central storage system enables compliance teams to overcome challenges associated with inefficient processes, incomplete data entries, and unauthorised off-channel communications, ensuring standardised and complete records.
Traditional data management involving disparate databases and tools can result in data silos, hindering efficient searches. CC1, designed to capture regulated digital data from various sources, ensures true alignment and centralisation. By providing a holistic view of all captured data, CC1 eliminates data silos, simplifies compliance processes, and enhances the ability to leverage data quickly and effectively.
In conclusion, CC1, powered by Custodia, has emerged as a comprehensive solution to the challenges of audit trail and traceability in the digital era. Its adaptability and features addressing unmatched conversations, inconsistent documentation, and data silos position CC1 as an invaluable tool for compliance teams navigating the complexities of the modern financial landscape. Businesses leveraging CC1 can confidently embrace digital transformation, knowing they have a unified solution ensuring compliance at every step.
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