50 Smartest Companies of the Year 2016

The Leader in Powerful Decision-Ready Risk & Compliance Intelligence: Regulatory DataCorp

“Regulatory DataCorp is a trusted partner that works with regulated organizations both domestically and globally to provide fully customized diligence solutions based on their individual needs, risk tolerance and business requirements.”

Regulatory DataCorp, Inc. (RDC), the Trust Diligence company, delivers powerful, decision-ready intelligence and world-class risk and compliance protection, allowing global organizations to identify banned/suspect entities, strengthen fraud protection, ensure regulatory compliance, manage supply and distribution risk, and protect their brand equity. With the world’s largest open source risk-relevant database, RDC provides AML/KYC compliance; Politically Exposed Persons (PEP) protection; emerging market intelligence; corruption, fraud and crime protection; and vendor screening and monitoring to a wide range of clients worldwide.

“Financial criminality is inherently irrational; yet regulators the world over are pressing executives for a rational technological solution to predict and prevent it,” said Tom Obermaier, CEO of Regulatory DataCorp. “CIOs around the world are struggling for a better, faster, and cheaper solution to overcome regulatory pressures and margin compressions.” Enter RDC. It provides sophisticated GRC (“Governance, Risk and Compliance”) solutions to financial institutions, corporate and technology companies the world over. Its unique SaaS-based platform, combining risk data, analytics, human analysts and technology, makes what was thought to be impossible a reality by precisely identifying key risks and eliminating them before they materialize.

The foundation for its service is the world’s largest risk relevant database, GRID, or Global Regulatory Information Database. GRID is over a decade old and was created by screening 2.5 billion news articles, scrutinizing over a million websites and reviewing over two million government lists, creating what Obermaier refers to as a “formidable database.” All of this data is tagged, assigned a risk code and risk stage, and is completely configurable to each firm’s numerous risk tolerances. “It’s the old risk maxim of severity x probability x maturity on steroids.”

Standing Tall Amongst Peers
In addition to its multi-million collection of PEPs (Politically Exposed Persons) and their associates the world over, RDC has also created a risk rating system for them, considering both micro and macro factors, that is also configurable for each firm. It is an innovation that allows firms to better process and risk allocate their resources to prevent PEP risks from materializing. But that is not the whole solution. Side-by-side with this tool is a hybrid technological and human analyst engine that substantially enhances the productivity of RDC’s clients. This engine finds needles in haystacks, eliminating false positives, scoring clients for key risk developments, identifying current risks, and monitoring a firm’s entire customer, counterparty and vendor list for material developments each and every day. “It allows our clients to pull into the full service lane at their risk gas station,” says Obermaier.

Maximizing Both Efficiency & Protection
Regulatory pressures are leading to lower risk tolerance and extending Know Your Customer (KYC) screening to include third-party providers. However, legacy systems used by many organizations make it impossible to raise the bar with enhanced screening while managing costs and driving efficiency. Managing your risk and keeping regulators satisfied requires a new approach. RDC’s innovative solutions maximize both efficiency and protection:

  • Reduce losses by screening and monitoring your customers against the largest global financial crime database for potential fraud risk.
  • Conduct effective due diligence into higher risk parties and automatically monitor report subjects for material changes of concern.
  • Drive efficiency and effectiveness by implementing a compliance workflow specifically configured to your lines of business.

Finding Real Value with RDC’s Solutions
A financial services firm was using a compliance management solution that gave them a 99 percent false positive rate for the checks they were performing. The firm had just completed an acquisition, doubling the organization size and bringing the headache of even more false positives to the forefront. After approaching RDC and buying their GRID solution, the firm found that RDC, while handling twice the amount of volume as their competitor, had 90 percent fewer false positives.

Future Outlook
RDC is working towards creating real-time solutions that will combine transactional data at financial institutions and other data from open sources to make a more predictive model. “Risk management innovation is the soul of RDC.”

Meet the CEO – Thomas Obermaier
Prior to joining RDC, Tom Obermaier was the Chief Risk Officer for Citigroup’s Global Transaction Services, a wholesale supplier of banking, security and risk services to financial institutions, governments and corporate clients worldwide. As CRO, he was responsible for all risk – including credit, market, operations, liquidity and regulatory. He managed $1.6 trillion in risk positions daily spread across 104 countries. Obermaier is an internationally recognized expert on risk matters, particularly regulatory risk and systemic issues surrounding payments and securities settlements. A founding member of the international regulatory council, Wolfsberg Group, Tom was one of the industry’s first advocates of extending risk management fundamentals to the regulatory compliance arena. A well-regarded risk expert in the anti-money laundering field, he has designed global compliance systems premised on risk management fundamentals.

Prior to joining Citi, Obermaier was the Chief Risk Officer for Deutsche Bank’s Global Transaction Bank. He also served as the Chief Operating Officer of its Cash Management business, spearheading the Company’s venture into e-business solutions such as mobile telephone payment capabilities. Before Deutsche, he was the Global Head of Anti-Money Laundering Compliance at Bankers Trust Company. Previous to that, he was a white collar criminal defense lawyer at the international law firm Skadden Arps. Obermaier has also held a number of positions with the United States Government.

“Our solutions are relied on by Fortune 100 companie across a range of industries and combines comprehensive data, a scalable platform, trained analysts and tailored analytics to provide precise risk alerts and ongoing monitoring for enhanced protection and performance.”