As we stand at the nexus of traditional financial practices and the cutting-edge innovations of the digital age, AI has emerged as the catalyst of transformation, offering unprecedented insights, efficiency, and adaptability to the global commerce challenges. This paradigm shift is not only revolutionizing the way we conduct business in the financial sector but also reinforcing the need for a comprehensive understanding of AI’s growing influence on decision-making, risk management, and customer experience.
Due to the high global cost of AI implementation, Cyprus has gained substantial benefits by utilizing outsourced platforms [3] that provide ready-made services tailored to businesses’ core goals. These AI-powered platforms not only streamline legal processes but also offer comprehensive legal solutions, aiding risk assessment and ensuring regulatory compliance while detecting suspicious financial transactions.
Eurofast, which is present in Cyprus alongside other South-East Europe, Middle East and Baltic countries, takes pride in being at the forefront of technology adoption, allowing us to assess the practical intricacies of tomorrow’s innovations. We harness an outsourced AI-driven platform to elevate the management of Governance, Risk, and Compliance (GRC). This has equipped Eurofast with the means to navigate the intricate landscape of regulatory requirements and risk management efficiently and proficiently, ensuring that our operations adhere to all relevant laws, European Union Directives, and regulations by Cyprus Stock Exchange Commission (CySEC) [2]. This technology-driven strategy has not only amplified operational efficiency but also underscores Eurofast’s dedication to upholding a resilient and adaptable GRC framework, safeguarding our clients’ interests and upholding the highest standards of fiduciary responsibility and Investment Funds Administration. The domains we actively utilize automated solutions encompass Risk Evaluation and Compliance, Corporate Legal, Screening, and Transaction Monitoring.
Presently, Eurofast has implemented Risk AI to effectively reduce the vulnerability to financial fraud and activities associated with financial terrorism, all while upholding and meeting the regulatory compliance standards. This technology aids us in identifying instances of money laundering, assessing the risk profiles of our clients, and mitigating the associated risks involved in both the initial onboarding process and the ongoing monitoring of our customers.
AI implementation in Corporate Legal aids to automate the establishment, management, and administrative procedures of businesses. The technology we use not only caters to companies with conventional structures but also Trusts, Investment Funds, and Intellectual Property firms, ultimately leading to heightened operational efficiency.
Shifting our focus, thanks to the opportunities of the outsourced platform, we have embraced cutting-edge Screening Technologies that provide access to a risk database containing adverse media, sanctions, watchlists, and politically exposed persons (PEPs). This AI-driven approach enables us to reduce the occurrence of false positives, enhancing our operational efficiency.
On another note, we are in the process of implementing an automated Transaction Monitoring system. This system will empower us to conduct real-time monitoring, respond to alerts, assess our clients’ financial transactions, and identify inherent risks at the transaction level, enabling us to take appropriate actions.
AI offers a valuable advantage in the realm of cross-border tax arrangements, specifically concerning compliance with the EU 2018/822 Directive [1], commonly referred to as Dac6. This advantage pertains to the simplification and optimization of tax reporting processes, encompassing the automated generation of tax reports, their subsequent validation, and the thorough assessment of their alignment with the stipulations outlined in the relevant directives.
In conclusion, the integration of AI into the financial world is undeniably a pivotal moment in the ongoing evolution of our industry. The technological advancements in GRC, Risk Intelligence implementation, automated corporate legal solutions, enhanced screening technologies, and the imminent arrival of automated Transaction Monitoring all exemplify Eurofast’s commitment to efficiency and compliance. This journey of innovation and adaptation is a testament to the enduring relevance of AI in the financial sector, and the possibilities it offers in delivering exceptional services to companies, Trusts and Investment Funds while navigating complex regulatory environments. The future promises to be both exciting and challenging, and Eurofast stands ready to meet it with unwavering dedication to technological excellence and alignment with CySec and the latest EU Directives.
REFERENCES:
1. COUNCIL DIRECTIVE (EU) 2018/822 of 25 May 2018 amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements
https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32018L0822
2. CYSEC REGULATED ENTITIES
https://www.cysec.gov.cy/en-GB/entities/
3. OUTSOURCED PLATFORMS:
https://www.lexisnexis.com/en-us/gateway.page
https://ebos.com.cy/wisebos-suite-regtech-and-fintech-platform/
Olena Marutovska
Administrator
Eurofast Nicosia
nicosia@eurofast.eu