Regulatory compliance is a set of mandates that every company or industry is required to follow to track accountability at work.
What Is Regulatory Compliance?
Regulatory compliance is the efforts made by companies to implement and follow all applicable laws, regulations, and rules.
When it comes to a company’s operations, it must follow a set of rules and regulations. These rules are developed by state, federal, or international institutions, and the requirements may differ depending on the industry or type of business. When a company operates according to these mandates, it is essentially following regulatory compliance.
Adherence to external legal mandates issued by state, federal, or international governments can be considered regulatory compliance. Furthermore, following company policies and procedures entails following the company’s internal regulations. Both, nevertheless, contribute to increased workplace accountability.
For example, once ledger transactions are pooled into blocks and recorded to the database, they are followed by cryptographic authentication which makes it nearly impossible to change any part of the ledger illicitly.
The immutability of blockchain can also be used in the proof-of-process for compliance. Blockchain technology can be used to record the steps required by regulatory requirements. The immutable recording of actions and their outputs can create an audit log for regulatory authorities to ensure adherence.
Blockchain technology has the potential to improve private regulatory compliance, and it can also assist regulatory agencies.
Agencies can maintain near-real-time access to secure compliance-related data stored on regulated financial organizations’ blockchains. Rather than analyzing information after the fact, this would allow regulators to continuously improve.
In conclusion, regulatory compliance is a protocol that every field must follow. But with the help of technology, these regulatory processes, such as KYC and financial crime prevention, maybe early converts among the many processes that could be improved and made efficient. All industries can reap enormous benefits.