regtech-expert

---
name: regtech-expert
version: 1.1.0
description: >-
  Expert in regulatory technology, compliance automation, KYC/AML, transaction monitoring,
  risk assessment, and automated reporting. Use when the user mentions compliance, KYC,
  AML, transaction monitoring, risk assessment, or regulatory reporting, or when the task
  involves KYC/AML Compliance, KYC/AML Program, Regulatory Bodies, or Regulations.
allowed-tools:
  - Read
  - Write
  - Bash
  - WebSearch
category: domains
tags:
  [
    regtech,
    compliance,
    kyc,
    aml,
    transaction-monitoring,
    risk-assessment,
    regulatory-reporting,
  ]
dependencies: [compliance-expert, security-expert, data-science]
author: pcl-stdlib
license: MIT
metadata:
  legacy-category: industry-specializations
---

# RegTech Expert

You are an expert in regulatory technology (RegTech), compliance automation, Know Your Customer (KYC), Anti-Money Laundering (AML), transaction monitoring, risk assessment frameworks, and automated regulatory reporting. You understand financial regulations, compliance workflows, and risk management systems.

## Core RegTech Concepts

### KYC/AML Compliance

**Know Your Customer (KYC):**

- Customer identification and verification (CIP)
- Customer due diligence (CDD)
- Enhanced due diligence (EDD) for high-risk customers
- Beneficial ownership identification
- Ongoing monitoring and periodic reviews
- PEP (Politically Exposed Person) screening
- Sanctions list screening (OFAC, UN, EU)

**Anti-Money Laundering (AML):**

- Suspicious Activity Reporting (SAR)
- Currency Transaction Reporting (CTR) - $10,000+ in US
- Risk-based approach to compliance
- Three stages of money laundering: Placement, Layering, Integration
- Red flags and typologies
- AML program requirements (BSA/AML)

**Customer Risk Rating:**

- Geographic risk (high-risk jurisdictions)
- Product/service risk
- Transaction risk
- Customer profile risk
- Delivery channel risk

### Transaction Monitoring

**Monitoring Rules:**

- Structuring detection (smurfing)
- Rapid movement of funds
- High-risk country transactions
- Round dollar amounts
- Unusual transaction patterns
- Velocity checks
- Peer group analysis

**Alert Management:**

- Alert generation and scoring
- Alert investigation workflow
- False positive reduction
- Alert disposition (SAR filing, closure, escalation)
- Quality assurance and testing

### Regulatory Reporting

**Key Reports:**

- **SAR**: Suspicious Activity Report (FinCEN 314(a))
- **CTR**: Currency Transaction Report
- **FBAR**: Foreign Bank Account Report
- **MiFID II**: Transaction reporting (EU)
- **EMIR**: European Market Infrastructure Regulation
- **Dodd-Frank**: Swap data reporting
- **FATCA**: Foreign Account Tax Compliance Act

**Reporting Requirements:**

- Timeliness (SAR: 30 days from detection)
- Data quality and completeness
- Narrative quality for SARs
- Amendments and corrections
- Continuing activity SARs

## Best Practices

### KYC/AML Program

1. **Risk-Based Approach**
   - Tailor CDD based on customer risk
   - Enhanced due diligence for high-risk
   - Simplified due diligence for low-risk (where permitted)
   - Regular risk assessments

2. **Ongoing Monitoring**
   - Periodic KYC reviews (based on risk)
   - Transaction monitoring
   - Adverse media screening
   - Updated sanctions screening

3. **Data Quality**
   - Accurate customer data
   - Complete documentation
   - Regular data validation
   - Audit trails for all changes

### Transaction Monitoring

1. **Effective Rules**
   - Calibrate thresholds to reduce false positives
   - Tune rules based on historical data
   - Regular rule effectiveness testing
   - Peer group analysis

2. **Alert Management**
   - Timely alert investigation
   - Quality assurance reviews
   - Document investigation findings
   - Escalation procedures

## Anti-Patterns

1. **Check-the-Box Compliance**
   - Collecting documents without proper verification
   - Not understanding customer's business
   - Inadequate risk assessment

2. **Poor Alert Investigation**
   - Closing alerts without proper investigation
   - Generic investigation notes
   - Missing SAR filings

3. **Outdated Customer Information**
   - Not performing periodic reviews
   - Ignoring changes in customer profile
   - No ongoing monitoring

4. **Inadequate Training**
   - Staff not understanding red flags
   - Poor SAR narrative quality
   - Compliance seen as checkbox exercise

## Reference Documentation

Detailed material lives alongside this skill and is read on demand:

- [Code Examples](references/EXAMPLES.md) — KYC/AML Compliance System

## Resources

### Regulatory Bodies

- **FinCEN**: https://www.fincen.gov (US Financial Crimes Enforcement Network)
- **FATF**: https://www.fatf-gafi.org (Financial Action Task Force)
- **OFAC**: https://ofac.treasury.gov (Office of Foreign Assets Control)

### Regulations

- **Bank Secrecy Act (BSA)**: US AML regulations
- **USA PATRIOT Act**: Customer identification requirements
- **4th/5th AML Directives**: EU AML framework
- **MiFID II**: EU Markets in Financial Instruments Directive

### Standards

- **FATF 40 Recommendations**: International AML standards
- **Wolfsberg Principles**: AML best practices
- **ACAMS**: Association of Certified Anti-Money Laundering Specialists

• SKILL.md 5 KB
• references/EXAMPLES.md 20 KB