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04 · Operate

A licence is the start. Running it is the work.

The infrastructure every regulated institution needs, the problems new institutions meet, and the lawful, regulated ways to solve them.

01 · Challenge

Core banking and technology

Licensed institutions need a ledger, payments engine, reporting and security that regulators can audit, often with outsourcing rules and operational resilience law (DORA in the EU) on top.

Core banking and technology

The solution

  1. 01Select a core system that fits the licence and volumes
  2. 02Document outsourcing and exit plans before the regulator asks
  3. 03Build regulatory reporting into the data model from day one

02 · Challenge

Correspondent and payment access

Without correspondent accounts and payment-system access, a licence moves no money. New and smaller institutions face de-risking by large banks.

Correspondent bankingCards and payment rails

The solution

  1. 01Approach correspondents with a complete AML and ownership file
  2. 02Use intermediary routes and scheme sponsors while direct access is built
  3. 03Diversify currencies and counterparties to avoid single points of failure

03 · Challenge

Compliance and AML

Regulators, correspondents and investors judge an institution first by its compliance: customer due diligence, screening, monitoring and reporting.

Compliance, AML and KYCThe EU AML package and AMLA

The solution

  1. 01Risk-based customer due diligence with beneficial-ownership checks
  2. 02Sanctions and PEP screening at onboarding and on every payment
  3. 03Monitoring tuned to the business, and a clear route to report suspicion

04 · Challenge

Capital, liquidity and governance

Capital and liquidity rules, and a board that can steer them, keep a licence safe as the business grows.

Bank capital and BaselLiquidity and fundingGovernance and fit and proper

The solution

  1. 01Capital planning against growth, with buffers above the minimum
  2. 02Liquidity stress testing and a contingency funding plan
  3. 03A board and key function holders who pass fit-and-proper review

A day in a regulated institution

How the pieces work together.

01/ 05
  1. Customer file

    Customer onboarding

    Identity, ownership and risk scoring before an account opens.

  2. Payment

    Payments out

    Payments leave through correspondent accounts and payment rails, screened against sanctions on the way.

  3. Alerts

    Monitoring

    Transactions are monitored; suspicious activity is reported to the authorities.

  4. Regulatory returns

    Reporting

    Capital, liquidity and statistical returns go to the supervisor on schedule.

  5. Supervisory review

    Supervision

    Reviews, inspections and questions from the regulator, answered with evidence.

Next step

Plan your operating model.

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