Given Veriff’s focus on identity verification, compliance with regulations around privacy, data protection and security online are our bread and butter. In our latest Veriff Voices podcast series, our Head of Regulatory Aleksander Tsuiman offered some sage advice on how companies can effectively manage the regulatory obligations created by operating as an online business.
As a tech company whose core business is identity verification, compliance with regulations designed to keep the online environment both safe and secure is central to both Veriff’s operations and our product offering. That being the case, we’re perfectly placed to understand the relevant regulations and help clients on this vital aspect of doing business online. Within Veriff, Aleksander Tsuiman is the lynchpin of our regulatory and compliance function. Here’s his advice on how to manage online regulatory obligations for your business.
1. Create and enforce accountability around compliance
According to Aleksander, this boils down to three key elements: culture, engagement, and making sure your internal regulatory function is present wherever it’s needed.
Culture: This starts from the top-down and is connected to strongly emphasizing the “why” around the need for a specific action.
‘When the leadership is living the same values, then it's very easy for individual contributors to actually align to that culture,’ says Aleksander.
Engagement: Ensure training and communication channels are engaging and align with actual ways of working within the organization and the teams you want to influence.
At the same time, you need to be approachable when there is an issue or concern. ‘The question is, are you actually reachable?’ comments Aleksander.
Being in the right place: Identify processes which need to be controlled from a compliance perspective and where the regulatory function therefore needs to be embedded.
‘I don’t use the phrase “being in the right place at the right time”,’ comments Aleksander, ‘it’s being in the right place all of the time.’
For Veriff, for example, one of these areas where compliance needs to be embedded is in the product development process. Product lawyers from Aleksander’s team work closely with our product managers throughout the cycle of planning and review.
2. Ensure you’re prepared for potential regulatory changes
Secondly, says Aleksander, you need to make sure you know not just what is changing, but where and when.
Develop a network: It’s impossible for one person to be on top of every regulatory development, particularly when operating across multiple jurisdictions, so build and maintain a tight network of legal counsels.
‘You can’t be an expert in every field of law in every jurisdiction around the world, so have cooperation partners,’ advises Aleksander.
Create effective internal processes: Build out a carefully structured in-house regime of monitoring routines, processes and systems for regulatory compliance.
‘We have researchers and analysts employed or engaged,’ explains Aleksander. ‘They make the first line analysis, and then they bring it back to the team.’
Enable your team: Build an efficient, reliable team capable of thinking out of the box and empower them to act independently on information while liaising effectively as a unit.
‘You can have a lot of information, but if you don’t do anything with that information then it’s useless,’ says Aleksander frankly.
3. Adopt the Three Horizons model
Finally, when it comes to ensuring you meet your regulatory obligations, Aleksander cites McKinsey’s well-proven Three Horizons model as an excellent approach.
Understand current obligations: Make sure you have a full understanding of all regulatory risks and obligations that affect your business and know how to meet them.
‘You have to embed yourself, so nothing falls through the cracks when those kinds of higher risk processes are being conducted inside the company,’ explains Aleksander.
Plan for future needs: Be ready to nurture emerging business by ensuring you understand what additional regulatory concerns it will imply.
‘To put it simply, it's just about having an understanding of the future and any key regulatory concerns,’ comments Aleksander. ‘When do they arise? Where do they arise?’
Foresee what’s coming next: Keep abreast of policy developments that could affect your business and make sure you understand the pain points of your industry, policymakers and wider society.
‘Yes, laws are obligations, but they're also opportunities, especially if you're operating in a more compliance-driven field,’ says Aleksander. ‘They can actually give the opportunity to produce real value for your business.’
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