Model-driven regulatory compliance: A case study of “Know Your Customer” regulations

摘要

Modern enterprises face an unprecedented regulatory regime. Industry governance, risk, and compliance (GRC) solutions are document-oriented and expert-driven. Formal compliance checking techniques in contrast attempt to provide ways for rigorous modeling and analysis of regulatory compliance but miss out on holistic GRC perspective due to missing integration between diverse set of (semi-) formal models. We show that streamlining regulatory compliance using multiple purposive models of various aspects of regulations, it is possible to leverage both the rigor of formal techniques and the holistic enterprise GRC perspective. Our contributions are twofold. First, we present a model-driven architecture based on a conceptual model of integrated GRC that is capable of addressing key challenges of regulatory compliance. Second, using Know Your Customer regulations in Indian context as a case study, we demonstrate the utility of this architecture. Initial results with KYC regulations are promising and point to further work in model-driven regulatory compliance.