More than ever, it is important for commercial companies to embrace technology; compliance is not limited to "fin-tech." Of course, compliance regulations and facilities are not going anywhere anytime soon. Financial systems are evolving day by day as well as systems created to thwart such financial systems. Malicious individuals and systems need to advance in order to bypass payment and financial systems. This is why it is important to constantly upscale compliance measures within and outside organizations, oversight bodies, legislations, organizational structures, policies, and software.


Compliance continues to evolve, and it is important for businesses to keep abreast of these trends and strategies. This article provides an overview of compliance trends in today's world and offers strategies for staying ahead as well as upscaling. However difficult it may seem to keep up and stay ahead, taking a crack at it would always be worth it.


Embracing Compliance And Staying Ahead 


Compliance is important for every business; even commercial businesses can no longer afford to hold back. It is past the brink of time to embrace the regulatory changes in various industries. Although these changes may be frequent and difficult to keep up with, it is not impossible and can be achieved with a competent team with the right qualified personnel. The advantages of compliance are more rewarding than the advantages of trying to bypass compliance. With compliance, businesses get to avoid sanctions that can be quite costly. Businesses can also acquire the high trust of customers and maintain a positive image.


A holistic approach should be applied to compliance in order to accomplish efficacy and efficiency as well as implement processes that are streamlined, including automated documentation and advanced technology.


Compliance Trends In 2023 To Note


In 2023, there has been a rise in new and recent risk and compliance trends, which is important for businesses to keep up with. This means that companies need to stay updated as they operate to keep the company afloat, mitigating risks and avoiding sanctions by protecting their company, as well as its data, and adhering to necessary regulations.


1. Cryptocurrency Regulations


Although De-Fi has been previously known as a free lane that is largely unregulated and unmanned, regulations have begun to spring up in some countries such as The United States, UAE, Spain, Italy, Japan, Nigeria, etcetera. Different cryptocurrencies are beginning to hit rock bottom and are struggling to get back on, including cryptocurrency trading and investing platforms. However, cryptocurrencies are still thriving and do exist. 

However, governments are only sought for ways to ensure that there is an improved regulation that will guarantee safer virtual financial environments for users. This is because crypto environments may sometimes be an avenue for fraud, money laundering, large-scale confidence scams, and the like. 

Besides the uncertainty and anonymity of the environment as well as its mystery and popular myths and misconceptions, it often makes it easy for fraudsters to take advantage of oblivious people in the name of cryptocurrencies. Cryptocurrency platforms have been yielding a lot of money in recent years unencumbered, so a lot of sanctions are expected to be churned from regulatory oversights soon.


2. ESG Due Diligence


ESG is an acronym for Environmental Social and Governance, and it is concerned with all the ways companies can address and accommodate related important issues. ESG risk evaluation aids businesses in identifying the risks that are associated with issues such as climate change, bribery and corruption, human rights violations, and other vices. ESG reports, and evaluations are now mandatory for publicly listed companies only. And al evaluation is judged through an ESG score (called a green index)


3. Russian Sanctions


Updated rules and laws are very important to keep up with when it comes to compliance. 2023 has seen numerous sanctions on Russia and Russian companies. There are over 12000 sanctions in place against the country and its organizations; companies believed to be directly involved in the conflict in Russia have also been sanctioned, such as Belarus.


4. Supply Chains, Background checks, and Adverse Media


It is no longer enough to keep clean as a company; supply chains also have to be vetted. Adverse media checks, as well as background checks, are crucial at this point. Companies must also ensure that supply chains comprise companies that do not deal with shady people and comply with ESG rules or regulations.


5. Ethical Professionalism And AI


AI is the next big thing; AI capabilities are becoming advanced daily. However, concerns about AI are growing daily. Deep fakes are one major concern, as they may be a method to bypass the live section. AI has also been known to reuse data that are not supposed to be reused due to copyright and license issues. However, rising efforts are being made to curb the excesses of AI innovations. 

The EU Act is the first comprehensive legislation making an attempt to regulate AI in the world. Regulations have also sprung up around the world, in China, Japan, India, Canada, and the USA. However, there is no formal global approach yet, which is likely expected to come up anytime soon.




The General data protection regulation is legislation and legal text first published in 2016, designed to protect consumer data and enhance consumer privacy. Following the clash between the European Union and Facebook. It has been established that companies, even in the United States, are subject to the GDPR as long as they deal with companies within the EU and obtain data from them.


7. Increased Proactiveness From Oversight Bodies Like SEC


SEC has become incredibly proactive in the past months; in 2O23, the fines placed on the organizations in the US totalled an amount of five billion dollars. There is also a current crypto crackdown, and there has been the introduction of the climate disclosure rule in 2023, which strengthens EDG rules.


Recommended - How to Verify the Legitimacy of a Business Using Compliance Solutions


Ways To Develop A Strong Adaptable Compliance Strategy


It is important for businesses to develop strong compliance in order to ensure that the company remains ethical, risks are mitigated, and sanctions are avoided. However, it is also important to develop a strong and adaptable strategy because the nature of regulations is dynamic, and there are always emerging trends and evolving business environments. Ways to develop strong compliance strategies that are adaptable are discussed below:


1. Continuous Regulatory Monitoring


Business leaders, executives, and personnel should create a process to monitor and stay updated on regulatory trends and developments in their specific industries, countries, and continents. It is advisable to subscribe to regulatory updates, participate in industry forums, and maintain relationships with regulatory bodies.


2. Proactive Risk Assessment


Regular risk assessments should be conducted to identify potential compliance risks and vulnerabilities. These include a keen analysis of industry trends, emerging risks, and changes in the business landscape. By anticipating and identifying potential compliance challenges, strategies can be developed proactively to address them and stay ahead of the curve.


3. Agility in Policy Development


Develop policies and procedures that are flexible and adaptable. Instead of creating rigid and static policies, focus on creating a framework that allows for updates and modifications as needed. This enables your compliance strategy to align with evolving trends and regulatory requirements without requiring an overall overhaul.


4. Embrace Technology and Automation


Technology and automation should be leveraged to enhance the agility and adaptability of a company’s compliance strategy. Invest in compliance management software, data analytics tools, and automation solutions to streamline compliance processes, detect emerging risks, and quickly respond to changing requirements. This allows for efficient updates and modifications as trends and regulations evolve.


5. Foster Cross-Functional Collaboration


Promote collaboration between compliance teams and other departments within your organization. Encourage open communication channels to share insights, best practices, and updates on regulatory changes. This collaborative approach helps ensure that compliance efforts are aligned with the evolving needs and trends of the business.


6. Regular Training and Education


Provide ongoing training and education to employees to keep them informed about new regulations, emerging trends, and changing compliance requirements. This includes general compliance training as well as specialized training related to specific trends or risks. By keeping your workforce well-informed, you can develop a more adaptable and responsive compliance culture.


7. Engage External Expertise


Stay connected with external compliance experts, industry associations, and regulatory bodies. Engage in dialogues, attend conferences, and seek guidance to gain insights into emerging trends and best practices. External expertise can provide valuable perspectives that help adapt compliance strategies to effectively address time and trends.


8. Monitor and Evaluate


Continuously monitor the effectiveness of compliance strategy and evaluate its alignment with changing trends and regulatory requirements. Establish key performance indicators (KPIs) and frequently or regularly assess the compliance program's performance against KPI metrics. The insights gained should be used to identify areas for improvement and make necessary adjustments.


9. Encourage Feedback and Adaptation


A culture of feedback and adaptability should be fostered within the hierarchies of an organization. Encourage employees to provide input, suggestions, and feedback on compliance processes and strategies. Actively seek feedback from stakeholders, including customers and regulatory bodies, to ensure that the compliance strategy remains responsive and adaptable over time.


10. Establish a Continuous Improvement Cycle


The effectiveness of compliance strategies should be regularly assessed, areas of improvement should be identified, and necessary changes should be implemented. It is also important to monitor the changes that are made; only then can the true value of improvement be measured. By establishing a continuous cycle of improvement, one can ensure that the compliance strategy remains adaptable and aligned with the evolving compliance landscape.


It is important to create and design compliance strategies that are adaptable as well as allocate resources to upscaling compliance processes. This allows companies to keep up with compliance trends, mitigate risks, and avoid costly sanctions. 

See how 100+ leading companies use Youverify for KYC and AML screening of customers for compliance and real-time risk detection. Request a demo today.