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How to ensure global regulatory compliance in financial institutions 

| 4 minutes of reading

Regulatory compliance is one of the greatest challenges for financial institutions operating in a globalized environment. Growing regulatory pressure is compounded by digital transformation, the rise of cyber fraud, and the need to safeguard institutional reputation. To address this scenario, organizations require advanced, secure technological solutions that are adaptable to multiple jurisdictions. 

Key challenges for the financial sector in meeting regulatory compliance 

Financial institutions, particularly those operating across multiple countries, require robust and flexible technological solutions to address increasingly complex challenges such as: 

  1. Rise in Cyberattacks: 
    The digitalization of financial services as a landscape, and the use of generative AI as a tool, have led to an increase in digital crimes. The average cost of a data breach in the financial sector exceeds USD 5.7 million. 
  2. Protection of Personal Data: 
    Financial institutions handle a high volume of personal data, and safeguarding this information is crucial. Non-compliance with data protection laws not only carries reputational risks but can also result in fines of up to €20 million. 
  3. Preventing Money Laundering: 
    Implementing effective AML and KYC controls remains one of the main challenges for financial institutions. 
  4. Multijurisdictional Management: 
    Operating across different countries means complying with fragmented and often divergent regulatory frameworks. This requires technological solutions that enable the adaptation of policies and processes to local legislation without compromising operational efficiency. 
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International Regulatory Compliance with Facephi 

Facephi offers a modular, scalable and configurable solution that enables financial institutions to comply with local regulations without sacrificing operational efficiency. The platform adapts to different regions and legal frameworks through a single integration. 

Europe: Compliance with GDPR and the EU AI Act 

In Europe, both the General Data Protection Regulation (GDPR) and the Artificial Intelligence Act impose strict requirements on the handling of personal data and the development of AI tools. For personal data processing, organisations must ensure transparency, explicit consent, data minimisation, and the right to be forgotten. Meanwhile, the EU AI Act demands self-assessment, explainability, and risk minimisation in the use of AI. 

Facephi supports compliance by providing: 

  • Local processing of biometric data directly on the user’s device 
  • Advanced AES-256 encryption 
  • Comprehensive audits and traceability to demonstrate regulatory compliance 
  • Explainable and auditable AI for regulators and users 

LATAM: Adaptation to Multiple National Legislations 

Facephi enables the configuration of country-specific policies (LGPD, Law 1581, LFPDPPP, etc.) and allows compliance to be managed from a single platform. 

  • Centralised and local management 
  • Cross-border protection with end-to-end encryption 
  • Localised technical support and training 

EMEA and APAC: Responding to Evolving Regulatory Frameworks 

In regions such as the Middle East, Africa and Asia-Pacific, where regulations are continually evolving, Facephi offers: 

  • Dynamic configurations by jurisdiction 
  • Adaptation to sectoral or national frameworks 
  • Local support for rapid and effective adoption 
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Key Benefits for Financial Institutions 

Both Facephi Identity Platform and IDV Suite enable financial institutions to operate using a single, modular platform that automatically adapts to the regulatory requirements of each region, making it ideal for institutions with a presence in multiple countries. 

Key benefits for businesses include: 

  • Advanced and adaptable compliance: A single configurable model to simultaneously meet local regulations. 
  • Reduced legal risk: Local processing and traceability to anticipate penalties and demonstrate compliance. 
  • International scalability: Technological solutions that drive global expansion and reduce operational costs. 
  • Global trust and reputation: Transparent and ethical compliance that strengthens institutional image and customer relationships. 

Turning Regulatory Compliance into a Competitive Advantage 

Facephi not only helps organisations meet legal requirements but transforms regulatory compliance into a distinctive value proposition. With a scalable, secure solution designed for global challenges, our biometric technologies—certified by bodies such as iBeta, ISO and NIST—stand out for their high reliability and strong detection capabilities against impersonation attempts.