Any business operating in a regulated industry understands the importance of compliance. A well-run compliance operation ensures a business continues to tick over, protecting it from fraud, regulatory pressures, and reputational risk.

Compliance teams are often experts in the market they are in and understand the document verification process well. Their records are in order, and they have a strong knowledge of the market. And then, the news comes down the line: the company has just received a license to enter an entirely new market.

All of a sudden, the team is left scrambling. This is, by no means, a reflection on the quality of a compliance team. Businesses in regulated markets such as iGaming, financial services or fintech will all face this multi-jurisdictional verification challenge, with new markets presenting their own complexities and standards.

Key Challenges

The challenge at the heart of expanding into regulated markets is that there is no universal standard for compliance and document verification. What is considered a valid form of identity in Brazil might not be accepted in the UK. Driving licenses, for example, vary in layout and structure, and a compliance officer might not have the experience to spot a fake.

On top of this, there is also the language barrier to consider. A compliance officer in London might not be able to translate a bank statement from Portuguese, and even if they can, there is a chance they might miss something. When verifying documents, ensuring you have correctly translated everything is essential. The slightest language nuance that is misunderstood can lead to regulatory headaches down the line. Of course, there is also an increased risk of fraud, with knowledge gaps potentially leaving businesses exposed to bad actors.

These regulatory headaches and fraud risks can be extremely costly, not just from a financial perspective, but from a reputational one. Entering a new market is always a big moment, and you need to make sure you get things right. Failing to comply or being exposed as a company that is a target for scammers can instantly damage your reputation, regardless of the industry you are in.

Finding a Solution

The traditional solution to this problem has been for businesses to hire a compliance team and translators from within those markets. This can be a timely and costly process.

The answer to this problem is not to hire more people or create new systems for every new market. It is to invest in technology that is designed with these expansions in mind and is ready to address cross-border KYC and compliance issues. This means having a platform that can process documents in multiple languages and formats, without requiring manual translation or reformatting, as well as being able to verify their authenticity in real-time.

eyeDP’s platform has been built with exactly these capabilities in mind. It allows businesses operating in international markets to process documentation without the need for separate tools or manual intervention.

Another challenge with international expansion is data storage. Our customisable user permissions allow regional compliance teams to access the data they need without compromising security. It gives companies control over the way their data is stored, while also allowing them to remain compliant with different market regulations.

Planning Ahead

Ultimately, for businesses expanding into different markets, KYC and compliance will always be more complex than if they remained in a single market. Different document types, regulatory requirements, and languages are not going anywhere.  However, the rise of AI technology and platforms like ours at eyeDP now means that the operational burden of juggling this complexity can be reduced significantly, saving teams time and money, and allowing them to prosper in new markets.

By having the infrastructure and tech stack already in place, companies are well-positioned to scale when the time is right.