🏦 Industry-Specific Compliance: Banking Sector in Focus

1. Shifting U.S. Regulatory Landscape

Fed overhaul underway: Federal Reserve Vice Chair for Supervision Michelle Bowman is leading a major revamp of bank regulation in the U.S., emphasizing tailored oversight, improved capital frameworks, and streamlined stress testing for both large and regional banks (reuters.com). 

Risk recalibration: Bowman’s approach includes reassessing the enhanced supplementary leverage ratio and stress-test transparency to support economic growth while preserving safety (ft.com). 

Wells Fargo turnaround: Relief seen as Wells Fargo’s asset cap is lifted, reflecting progress in governance, controls, and AML remediation since past enforcement actions (barrons.com). 

Insight: Compliance teams must adapt to more dynamic supervisory frameworks and shifting capital standards, moving from rigid compliance toward nuanced, bank-specific oversight. 

 

2. Top Compliance Priorities for 2025

According to CSI and Protiviti: 

Community Reinvestment Act (CRA) modernization—driving banks to enhance CRA-related policies, data collection (via Dodd-Frank Sections 1071/1033), and low-income inclusivity (protiviti.com, csiweb.com). 

Financial crime compliance—with regulators promoting AI tools for AML/CTF detection (csiweb.com). 

Cloud risk—supervising third-party/cloud platforms amid complex data environments (ft.com). 

AI & digital innovation—balancing new tech with controls on bias, explainability, and operational risk (en.wikipedia.org). 

Operational resilience & cyber risk—integrating cyber defences, MFA, and blockchain across digital channels . 

Insight: Banking compliance must span community obligations, financial crime, vendor/cloud governance, AI risk, and cybersecurity in a holistic program. 

 

3. Key Compliance Tools & Techniques

🔄 3.1 Regulatory Change Management 

AI-driven platforms (Compliance.ai, Corlytics) deliver real-time updates and actionable regtech workflows tied to FCA, Fed, ESMA, and other regional rules (financialbrandforum.com). 

🔎 3.2 Financial Crime & AML Tech 

Tools like ComplyAdvantage and Facctum automate KYC, sanctions, transaction monitoring, and AI-driven risk scoring across jurisdictions . 

⚙️ 3.3 Process Mining & Blockchain 

Techniques detect divergences from standard processes, while blockchain offers auditable, tamper-proof records—ideal for transaction control and ESG capital risk frameworks . 

🧠 3.4 AI Governance Engines 

AI platforms support pattern detection across compliance programs; however, human oversight remains crucial to manage model bias and false positives . 

 

4. Effective Implementation Strategy

Phase	Focus	Outcome
1. Risk & Reg Map	Assess regional rules (CRA, GLBA, MiFID II, Basel III Endgame) across business lines (en.wikipedia.org)	Prioritized compliance coverage
2. Tech Evaluation	Identify tools for regulatory tracking, AML, process mining, and AI governance	Assembly of modular RegTech stack
3. Pilot & Integrate	Run pilots integrating GRC, AML, and ERP systems via APIs	Real-time compliance workflows
4. Governance & Training	Assign clear oversight roles and conduct scenario-based training to maintain controls during reforms	Strong risk culture
5. Monitor & Adapt	Use metrics from change logs, AML alerts, breach events, audit findings for quarterly reviews	Continuous improvement

 

5. Future Outlook & Strategic Suggestions

Basel III “Endgame”: Finalised capital reforms will come into effect July 2025—banks must recalibrate risk-weighted assets and CET1 ratios (en.wikipedia.org). 

Potential deregulation push: Democrats and Republicans may ease burden on smaller banks, but AML and financial crime rules are unlikely to loosen . 

AI regulation in fintech/banking: Regulatory frameworks for explainable AI and cybersecurity in financial services are gaining momentum globally . 

Insight: Compliance teams should proactively model the impact of Basel III parameters, balance efficiency with regulatory rigor, and embed AI governance controls early. 

 

✅ Final Takeaways 

Banking compliance is evolving—from static compliance checkboxes to agile, tech-enabled ecosystems capable of handling dynamic regulations, digital banking risks, and compliance with societal expectations. By forging integrated strategies—combining regulatory intelligence, AML monitoring, process analytics, and AI governance—banks can not only achieve compliance but also enhance operational resilience and trust. 

 

💬 Join the conversation: 

Which regtech tools are you using for AML, regulatory tracking, or AI governance? 

How are you preparing for Basel III Endgame and evolving CRA obligations? 

Where are you integrating process-mining or blockchain in your compliance workflows? 

Share your experiences and best practices below—we’re all navigating this evolving compliance frontier together!