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If financial services institutions (FSIs) do not comply with a variety of new regulations they can face criminal charges. Despite budget pressures they must therefore continue to invest in technologies in support of their compliance mandate. This paper describes the major regulations applying to FSIs and discusses IT spending to comply with those regulations.

Introduction: Regulatory technology (Regtech) uses technology and innovative techniques to improve and expedite regulatory compliance procedures across various sectors, notably the financial industry. This chapter closely examines how Regtech is being used in the financial sector.

Purpose: This study examines the adoption and implementation of Regtech solutions in the financial sector. It aims to identify the leading technologies propelling the adoption of Regtech and the benefits and challenges financial institutions face when implementing Regtech solutions for regulatory compliance.

Need of the Study: The study examines the increasing demand for effective regulatory compliance in the financial sector. Financial institutions seek novel ways to streamline compliance procedures as regulatory complexities increase. This study fulfills the need to examine the adoption of Regtech as a potential solution to enhance regulatory compliance’s efficiency and effectiveness.

Research Methodology: This chapter’s research methodology entails a comprehensive review of existing studies, and examples to collect pertinent data and insights. The current study provides an extensive and comprehensive view of the existing studies. Examining real-world examples provides practical examples and demonstrates the efficacy of Regtech in the financial sector.

Findings: The findings reveal that the adoption of Regtech is gaining momentum in the financial industry, with increasing recognition of its potential benefits. Financial institutions leverage Regtech solutions to automate compliance processes, monitor regulatory changes, and enhance risk management practices. However, technological complexities, regulatory constraints, and data security concerns pose significant hurdles to widespread adoption.

This study aims to assess the current state and impact of the RegTech industry on financial regulation and compliance by providing a comprehensive overview of its evolution and identifying key challenges and opportunities.

A hybrid review approach was employed, involving a detailed bibliometric analysis of 89 scholarly articles and a content analysis of 47 key studies, covering the period from 2010 to 2023.

The research identifies critical trends and challenges within the RegTech industry, focusing on the roles of regulatory bodies and technological innovations. It explores four major themes: (1) RegTech applications in FinTech, financial services and banking regulations; (2) RegTech’s role in compliance management and fraud prevention; (3) the impact of digital transformation, governance and regulations; and (4) the integration of Big Data, AI, ML and blockchain in regulatory systems.

This study provides a comprehensive framework for understanding the complicated applications of RegTech, highlighting its potential to enhance compliance efficiency, mitigate risks and foster innovation within the financial sector. The insights provided are valuable for policymakers and financial institutions aiming to develop more robust regulatory frameworks and practices.

This study uniquely integrates bibliometric and content analysis to provide an up-to-date and nuanced overview of RegTech, focusing on recent advancements in AI, ML and blockchain technologies. It not only maps current trends but also identifies research gaps and offers new directions for future research.

This paper aims to examine the antecedents of the Automated VAT Solution (AVS) and its eventual consequence on value-added tax (VAT) compliance costs among the small and medium enterprises (SMEs) in Gulf Cooperation Countries (GCC), with the United Arab Emirates (UAE) as context.

A quantitative research design was deployed through a survey of 576 SMEs in the UAE. The data was analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM).

The findings revealed that technological factors (IT complexity and IT competency) and organizational factors (management support and size of SME) significantly influence AVS adoption. However, only consumer pressure was found to be significant among the environmental factors, and AVS adoption was found to have a significant negative effect on the VAT compliance cost.

A lower coefficient of determination for the effect of AVS adoption on VAT compliance cost meant that there may be other accounting-related technologies that improve operational efficiency and process automation and, in the long run, lower the cost of VAT compliance. These technologies should be included in future studies.

The findings imply that the adoption of AVS among SMEs is highly desirable, as it reduces VAT compliance costs. Increased regulatory pressure by the UAE’s policymakers is also desirable to accelerate AVS adoption for enhanced cost reduction and revenue maximization from the perspectives of both the government and SMEs.

To the best of the authors’ knowledge, this study could be the first to expand the Technology-Organization-Environmental (TOE) Framework through the integration of determinants of AVS adoption and VAT compliance costs among SMEs in GCC countries.

Organizations invest in information security (IS) technology to be more competitive; however, implementing IS measures creates environmental conditions, such as overload uncertainty, and complexity, which can cause employees technostress, eventually resulting in poor security performance. This study seeks to contribute to the intersection of research on regulatory focus (promotion and prevention) as a type of individual personality traits, technostress, and IS.

A survey questionnaire was developed, collecting 346 responses from various organizations, which were analyzed using the structural equation model approach with AMOS 22.0 to test the proposed hypotheses.

The results indicate support for both the direct and moderating effects of security technostress inhibitors. Moreover, a negative relationship exists between promotion-focused employees and facilitators of security technostress, which negatively affects strains (organizational commitment and compliance intention).

Organizations should develop various programs and establish a highly IS-aware environment to strengthen employees' behavior regarding IS. Furthermore, organizations should consider employees' focus types when engaging in efforts to minimize security technostress, as lowering technostress results in positive outcomes.

IS management at the organizational level is directly related to employees' compliance with security rather than being a technical issue. Using the transaction theory perspective, this study seeks to enhance current research on employees' behavior, particularly focusing on the effect of individuals' personality types on IS. Moreover, this study theorizes the role of security technostress inhibitors for understanding employees' IS behaviors.

This study aims to discuss the growing use of RegTech solutions by financial institutions to comply more efficiently with regulation in terms of anti-money laundering compliance and more specifically its influence on the evolution of financial crime in the next ten years.

Based on two online Delphi surveys sent to a panel of international experts composed of eight specially recruited professionals and specialists of anti-financial crime compliance and RegTech, five main predictions have been developed.

It was found that artificial intelligence would become the most impactful technology for financial institutions to fight financial crime, and that there will be a strong positive correlation between ever-more elaborated compliance programs and the level of sophistication of methods used for money laundering. Furthermore, the panel designated regulators’ recommendations as likely to be less influential than RegTech solutions, and the time required to integrate RegTech solutions for AML compliance as the main future challenge.

These predictions are meant to provide financial institutions and regulators with useful outlooks. While the reviewed literature focused on the role of regulations on the evolution of money laundering, this study puts stress on RegTech solutions and their impact on both compliance and financial crime.

Blockchain technology (BT)-based halal discussions have gained momentum as their significant benefits have become evident. However, explaining the halal compliance of blockchain-based products remains insufficient. This study attempts to confront this deficiency and promote a thorough understanding of halal compliance using BT.

The research design emphasized the relationship between theoretical and empirical evidence in adopting BT to produce novel knowledge for halal compliance. Furthermore, this study formulated a model resulting from an iterative process between theoretical and empirical evidence, as confirmed by multiple case studies. To produce solid findings, the data were collected using a few approaches involving key actors in halal-specific areas in Indonesia, such as in-depth interviews, direct observations and documentation.

The study shows that the developed model elucidates the synthesis of BT and halal compliance. BT’s features can facilitate the dimensions of halal compliance and can be applied in multiple cases. The BT features work complementarily, and it was found that some features work dominantly in each dimension for halal compliance, while other features accentuate a minor role. Other findings identified discrepancies among the cases since they had different characteristics.

This study initiates an integrative model combining BT features and halal compliance dimensions, including traceability, integrity and authenticity. The model, along with the study’s implications and contributions, is then explained in detail in this article.

This paper aims to explore a paradoxical situation, asking whether it is possible to reconcile the immutable ledger known as blockchain with the requirements of the General Data Protection Regulations (GDPR), and more broadly privacy and data protection.

This paper combines doctrinal legal research examining the GDPR’s application and scope with case studies examining blockchain solutions from an archival theoretic perspective to answer several questions, including: What risks are blockchain solutions said to impose (or mitigate) for organizations dealing with data that is subject to the GDPR? What are the relationships between the GDPR principles and the principles of archival theory? How can these two sets of principles be aligned within a particular blockchain solution? How can archival principles be applied to blockchain solutions so that they support GDPR compliance?

This work will offer an initial exploration of the strengths and weaknesses of blockchain solutions for GDPR compliant information governance. It will present the disjunctures between GDPR requirements and some current blockchain solution designs and implementations, as well as discussing how solutions may be designed and implemented to support compliance. Immutability of information recorded on a blockchain is a differentiating positive feature of blockchain technology from the perspective of trusted exchanges of value (e.g. cryptocurrencies) but potentially places organizations at risk of non-compliance with GDPR if personally identifiable information cannot be removed. This work will aid understanding of how blockchain solutions should be designed to ensure compliance with GDPR, which could have significant practical implications for organizations looking to leverage the strengths of blockchain technology to meet their needs and strategic goals.

Some aspects of the social layer of blockchain solutions, such as law and business procedures, are also well understood. Much less well understood is the data layer, and how it serves as an interface between the social and the technical in a sociotechnical system like blockchain. In addition to a need for more research about the data/records layer of blockchains and compliance, there is a need for more information governance professionals who can provide input on this layer, both to their organizations and other stakeholders.

Managing personal data will continue to be one of the most challenging, fraught issues for information governance moving forward; given the fairly broad scope of the GDPR, many organizations, including those outside of the EU, will have to manage personal data in compliance with the GDPR. Blockchain technology could play an important role in ensuring organizations have easily auditable, tamper-resistant, tamper-evident records to meet broader organizational needs and to comply with the GDPR.

Because the GDPR professes to be technology-neutral, understanding its application to novel technologies such as blockchain provides an important window into the broader context of compliance in evolving information governance spaces.

The specific question of how GDPR will apply to blockchain information governance solutions is almost entirely novel. It has significance to the design and implementation of blockchain solutions for recordkeeping. It also provides insight into how well “technology-neutral” laws and regulations actually work when confronted with novel technologies and applications. This research will build upon significant bodies of work in both law and archival science to further understand information governance and compliance as we are shifting into the new GDPR world.

Amid all the bad news of Wall Street wrongdoing, there is good news for financial services companies and compliance staff: A new generation of technology, called “behavior detection”, means that more and more financial abuses and violations will be detected in the early stages rather than long after they have severely damaged a company and its customers. In this article, we will explain: how behavior detection technology works, how it finds potential violations quickly, and how it meets the new and growing expectations and demands of regulators for comprehensive and more effective compliance systems.

The purpose of this paper is to systematically analyze the literature around regulatory compliance and market manipulation in capital markets through the use of bibliometrics and propose future research directions. Under the domain of capital markets, this theme is a niche area of research where greater academic investigations are required. Most of the research is fragmented and limited to a few conventional aspects only. To address this gap, this study engages in a large-scale systematic literature review approach to collect and analyze the research corpus in the post-2000 era.

The big data corpus comprising research articles has been extracted from the scientific Scopus database and analyzed using the VoSviewer application. The literature around the subject has been presented using bibliometrics to give useful insights on the most popular research work and articles, top contributing journals, authors, institutions and countries leading to identification of gaps and potential research areas.

Based on the review, this study concludes that, even in an era of global market integration and disruptive technological advancements, many important aspects of this subject remain significantly underexplored. Over the past two decades, research has lagged behind the evolution of capital market crime and market regulations. Finally, based on the findings, the study suggests important future research directions as well as a few research questions. This includes market manipulation, market regulations and new-age technologies, all of which could be very useful to researchers in this field and generate key inputs for stock market regulators.

The limitation of this research is that it is based on Scopus database so the possibility of omission of some literature cannot be completely ruled out. More advanced machine learning techniques could be applied to decode the finer aspects of the studies undertaken so far.

Increased integration among global markets, fast-paced technological disruptions and complexity of financial crimes in stock markets have put immense pressure on market regulators. As economies and equity markets evolve, good research investigations can aid in a better understanding of market manipulation and regulatory compliance. The proposed research directions will be very useful to researchers in this field as well as generate key inputs for stock market regulators to deal with market misbehavior.

This study has adopted a period-wise broad-based scientific approach to identify some of the most pertinent gaps in the subject and has proposed practical areas of study to strengthen the literature in the said field.