Accurate, real-time compliance is possible – even for BankIT Circular285
In the continuous stream of regulatory updates that invests financial compliance professionals, surely the 42nd update of 30 March 2023 to Circular 285 of 17 December 2013 issued by the Bank of Italy has not gone unnoticed.
Indeed, this document regulates a large part of the regulatory perimeter regarding “Supervisory Provisions for Banks” in Italy. Having deeply analyzed the working processes of banking compliance, we are aware of the need for innovative technological tools to enable financial institutions to automate those steps of compliance processes that do not require human analytical and decision-making skills.
And our RegTech software is designed precisely to provide compliance professionals with accurate, real-time regulatory analysis. Even with respect to BankIT Circular 285.
The 42nd update to BankIT “Supervisory Provisions for Banks” (Circular 285/2013)
We have already presented several use cases with respect to how Aptus.AI’s RegTech platform can concretely help compliance professionals. From ESG objectives to compliance with the EU DORA Regulation to the recent Bank of Italy Circular 269 update.
But, within the Italian regulatory landscape, the most relevant news for all financial institutions is the 42nd update to the “Supervisory Provisions for Banks”, contained in Circular 285/2013, published by the Bank of Italy less than two weeks ago.
This document introduced important changes to the regulations on covered bonds in Italy. In particular, the legislator’s changes focused on Chapter 3 of Part Three, in order to transpose the new European regulations on covered bonds.
These provisions provide a supervisory regime for Guaranteed Bank Bonds issuance programs and assign the responsibility for their supervision to the Bank of Italy, both for significant and less significant banks, while always assigning to BankIT the task of authorizing or not, after evaluation, the launch of new Guaranteed Bank Bonds issuance programs.
The new regulations, in fact, define the conditions for receiving authorization from the Bank of Italy to start new issuance programs, including the evaluation criteria, the information that applicants must submit to the authority and the content of the issuance program.
The various updated sections of Circular 285 introduce several regulatory requirements, such as the introduction of specific organizational and risk management safeguards arising from the program, the requirement for participating banks to have internal operating limits on the disposal of eligible assets, investor disclosure requirements, and the requirement for banks to notify the Bank of Italy in advance of their intention to make a new covered bond issue for the first time under an existing program on the effective date of the new provisions.
In short, the regulatory changes made by the 42nd update of Circular 285 are many and have a high impact on financial institutions in the Italian banking landscape.
Aptus.AI’s an automated regulatory analysis of 285 in real-time
This is why the work of analyzing the regulatory perimeter inherent in “Supervisory Provisions for Banks” involves a great effort in terms of time and resources from the compliance function of financial institutions. Conducting such impact analyses accurately and quickly is only possible with the support of technological tools, which are adequate to handle the quantity and complexity of regulatory updates.
Indeed, our RegTech solution leverages Artificial Intelligence to automate some specific steps of compliance processes exploiting an innovative standard, electronic and machine readable format of banking regulations. The latter enables an automated analysis on legal data, offering compliance professionals the ability to interactively navigate regulations and compare the differences between enacted versions, thus immediately identifying the new regulatory requirements and obligations introduced by each update.
But Aptus.AI’s RegTech solution also makes it possible to prepare a first-impact analysis on the regulatory perimeter identified by the regulations of interest, through the automatic extraction of obligations and penalties related to a specific regulatory update, in respect to the previous document.
The obligations automatically extracted by the platform can then be cross-referenced with the impacted internal processes and policies, thus resulting in an automated first-impact analysis. That’s why, even when facing a high-impact regulatory update such as the changes made by the Bank of Italy to the Circular 285, our RegTech platform enables financial institutions to greatly reduce the time required and the risk of error within compliance processes.
Aptus.AI’s AI assistant’s features
Aptus.AI’s AI assistant is designed to revolutionize the work of compliance, legal, and consulting professionals, offering fast, precise, and customizable support in regulatory analysis.
Exploiting advanced Artificial Intelligence technologies, Aptus.AI’s AI assistant can transform the management of compliance and legal activities into a true competitive advantage, saving time and improving decision quality.
Here are the main features of the Aptus.AI’s AI assistant:
- Regulatory monitoring and real-time alerts: Automatic notifications on regulatory updates of interest, including Italian, European, and international authorities.
- Impact analysis and regulatory comparison: Automatic identification of the effects of updates on organizations and clear visualization of the differences between versions of legal texts.
- Custom projects and ad hoc responses: Ability to train the AI assistant on your own cases and receive targeted, reliable analyses based on the documents provided and specific needs.
- Automated generation of legal documents: Automated drafting of policy drafts, deeds, legal opinions, and recurring documents thanks to generative AI powered by always up-to-date databases.
- Risk analysis: Automatic identification by AI of risks arising from regulatory changes, allowing you to dedicate more time to strategic activities.
- Shared workspaces: Areas where you can easily collaborate with your team, sharing information and regulatory analyses in dedicated and secure environments.
With Aptus.AI’s IA assistant, compliance and legal consulting enter the era of digital innovation.
