May 19, 2024

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Unpacking Cross-Border Financial Regulations

As financial transactions transcend multiple jurisdictions, the stakes for effective and safe cross-border payments grow ever greater. We will discuss in this blog series how regulatory compliance plays an integral part in enabling efficient yet secure transactions.

Recent enhancements to BIS data show that nonbank financial institutions’ (NBFIs’) dollar funding of banks outside the US increased significantly during Q1 2023, likely reflecting funds withdrawn by entities within the US shifting into money market funds (MMFs).

Regulatory Compliance

Attaining regulatory compliance involves adhering to all of the rules and regulations required of your business. This may include local laws, industry standards and international conventions – for instance financial companies operating globally must abide by various rules such as the Foreign Corrupt Practices Act, General Data Protection Regulation (GDPR) in Europe, Service Organization Control 2 compliance for IT security as well as more.

Adherence to open finance regulations allows businesses to cultivate trust with clients, partners, and vendors, leading to more deals, faster growth rates and increased market share. Conversely, non-compliance can have serious repercussions, including fines, shutdowns and lost investors – the best way to ensure compliance is working with professionals who possess legal knowledge as well as industry experience that will enable your organization to meet all your requirements and fulfill any potential voids in compliance. Here are four benefits associated with working with regulatory compliance experts.

Risk Management

An effective risk management process is critical to the overall success of any project. Best practices include consulting decision-makers driving new business initiatives and initiating an extensive due diligence process well in advance of closing transactions to help minimize credit, liquidity, market, and operational risks.

It starts by identifying all possible risks and creating a risk register, then ranking those risks according to their likelihood of materialization (frequency, impact and velocity scores) so you can prioritize those most likely to hurt your projects. While eliminating or controlling all these risks through mitigation efforts is ideal, some residual risks will always remain. Creating an inclusive risk culture with strong leadership at its center is key; stakeholders should be included throughout each step of this process through risk management solutions which offer notifications so they can stay abreast of progress being made and receive notifications directly within it.


Transparency is a broad concept that encompasses many areas of business and governance. It involves being open and clear with customers, shareholders, and the general public about what’s happening behind the scenes and being accountable for any results of any actions taken.

Transparency is one of the cornerstones of democracy and free markets, enabling citizens to hold their governments accountable and guaranteeing an economy based on fairness and free market principles.

However, it should be kept in mind that transparency should not be seen as an end in itself; its purpose lies in helping societies utilize it for change. Therefore, regulatory compliance measures are needed in order to keep an eye on CBDC use and enforce transparency standards globally – this ensures a secure financial system without abuse.


Trust is at the core of global money flows, and regulatory compliance serves as a watchdog to ensure financial institutions adhere to anti-money laundering (AML) and counter terrorism financing (CTF) laws and guidelines, thus discouraging any use of cross-border payment systems for illegal purposes.

An effective offshore trust structure relies on having a dependable trustee who will protect both beneficiary assets and legal rights. They must be capable of working with international HNW families, managing cultural differences between family members and discord, while simultaneously dealing with legal complexities associated with overseas investments.

Trusted advisors must have an in-depth knowledge of all forms of offshore trusts, including both revocable and irrevocable ones, in order to assist clients with selecting which trust is appropriate for them and provide expert guidance regarding legal, tax, and regulatory considerations involved. Furthermore, they should help implement and manage trusts so they are always up-to-date.