How to Survive in the Compliance Jungle
Adam Doyle at LexisNexis® Risk Solutions, says that operators can easily find themselves in a compliance tangle, but a combination of smart technology and expertise can help them clear through the dense undergrowth and on to sustainable success.
Operating compliantly in a highly-regulated market such as the UK can often feel like hacking through a dense jungle. The going can be incredibly tough with danger lurking around every corner, in the form of external factors that present a high risk of failure, with devastating consequences, writes Adam Doyle of LexisNexis.
It’s something that even those at the top of the food chain struggle with – just look at the record fines handed down by the Gambling Commission to industry titans for failures relating to responsible gambling and AML.
These fines underline the importance of safe gaming and KYC, and staying compliant in core regulated markets, like the UK.
Of course, things can and do change at a moment’s notice. Being able to anticipate change and stay two steps ahead of regulation at all times is crucial to success. But how exactly can businesses do this when most regulators do not provide a blueprint for the standards they expect from operators?
This is how…
1 – Leverage the latest compliance technology solutions
There are plenty of tech and data solutions with tools that help make clearing your way through the compliance jungle easier and quicker. By making use of orchestration platforms like RiskNarrative™ you can deploy multi-jurisdictional and multi-product strategies from one place.
Building and maintaining a solution internally can become complex and demanding on resources, so finding a technology partner can really improve efficiency and agility.
2 – Stay on top of trends and adapt early
The only way to keep ahead of regulatory change is to be agile and instantly adapt to any shift in market conditions, whether that be fraud trends, legal updates or new technologies and tools that become available. That’s why it’s important to build or choose a solution that gives you the control you need to deploy strategy changes quickly and smoothly.
The solution also needs to be scalable. Investing in a solution that you outgrow and no longer meets your needs can be expensive, unsustainable and can leave you exposed to non-compliance.
3 – Have a robust audit trail
A robust audit trail is essential in today’s regulatory regime. Similar to the legendary diaries of the early explorers, navigating the compliance jungle requires you to record your experience in detail along the way. This means documenting every activity, interaction and decision taken for each and every player. This is a huge undertaking, and that’s why automation should play a key role in any compliance strategy.
It ensures you not only stay on top of responsible gambling requirements, but also the latest AML requirements. Automated AML monitoring and screening allow operators to gain insight into potential money laundering activity before it’s too late. It works by using advanced filters to help reduce demand on redemption teams and improve operational efficiency. Again, a solid audit trail here, is a must.
When you consider that the majority of recent fines are due to historic breaches stretching back two, three or even four years ago, its easy to see why it’s important for the operator to invest in a platform that allows them to retrieve audits comprehensively, but quickly so they can be submitted as evidence to the regulator.
4 – Lean on consultants and specialists
Even with the right technologies in place, it’s easy to become tangled in the long and twisting vines of compliance. The good news is there are plenty of firms and consultants with a wealth of experience when it comes to meeting regulatory requirements and often in specific markets, so operators can always bring in additional support, if needed.
By following these steps, operators can avoid the multi-million-pound fines being handed down by the Gambling Commission and other regulators at present, while also being confident players are protected and that suspicious financial activity is being identified and halted.
This means they will not only survive, but will be able to claim their right to the title of King of the compliance jungle.