REGTECH SOLUTIONS DEVELOPMENT
PROPELOO engineers RegTech platforms — KYC/AML automation, transaction monitoring, sanctions screening, regulatory reporting pipelines, audit trail infrastructure, and the compliance workflow tooling that reduces manual review burden while maintaining regulatory defensibility. Compliance that depends on manual processes does not scale.
RegTech is the automation of compliance functions — the conversion of regulatory requirements (KYC obligations, AML monitoring, transaction reporting, sanctions screening) into software workflows that handle routine cases automatically and surface only exceptions for human review. A financial services business that manually reviews every transaction for AML red flags will have a compliance team whose size grows linearly with transaction volume. Automated transaction monitoring with risk-based alert generation scales without the same team growth. PROPELOO builds RegTech infrastructure that automates the high-volume, rule-based compliance tasks while preserving human judgment for the cases that require it — and generating the audit trail and regulatory reporting outputs that demonstrate compliance to regulators.
KYC, AML monitoring, sanctions, reporting, and audit infrastructure are each distinct compliance automation domains.
Identity document verification (Jumio/Sumsub), liveness detection, facial match, database checks (credit bureau, government ID). Tiered KYC: auto-approve for low-risk, manual review for edge cases. Ongoing monitoring: periodic re-KYC triggers, adverse media alerts.
Rule-based monitoring: structuring detection, velocity rules, counterparty risk, geographic risk. ML-based anomaly detection: peer group analysis, unusual pattern detection, network analysis. Alert prioritisation by risk score. Case management for investigation workflow.
Real-time screening against OFAC SDN, UN Consolidated List, EU Consolidated List, FATF grey/black lists. Fuzzy name matching for transliteration and name variation. False positive reduction through threshold configuration. Every screening event logged.
SAR (Suspicious Activity Report) generation with pre-populated fields from case management. CTR (Currency Transaction Report) for cash-equivalent transactions above threshold. EMIR/MiFID II trade reporting to trade repositories. Automated submission where regulators support API filing.
Append-only compliance action log: every KYC decision, every AML alert, every sanctions hit, every manual review action, every SAR filing. Logged with timestamp, user identity, and decision rationale. Exportable for regulator examination.
Alert triage workflow: auto-close low-risk alerts, queue medium-risk for analyst review, escalate high-risk to senior compliance. Case assignment, investigation notes, evidence attachment, resolution documentation, SAR filing trigger.
RegTech is a risk management system, not just a compliance checklist. The architecture must reduce both regulatory risk and operational risk simultaneously.
An AML monitoring system that generates 1000 alerts per day, 980 of which are false positives, consumes analyst capacity without proportional compliance value. The monitoring system must be calibrated for the risk profile of the specific business — retail payments have different risk patterns than institutional crypto trading. Alert quality is as important as alert coverage.
Axiom: ALERT QUALITY OVER ALERT VOLUME
A regulator examining a compliance programme does not just check whether rules exist — they check whether the rules were applied, decisions were documented, and exceptions were handled consistently. An audit trail that says "KYC completed" but does not record what checks were performed, who reviewed borderline cases, and why decisions were made will not satisfy a regulator.
Axiom: DOCUMENT DECISIONS, NOT JUST OUTCOMES
Automated compliance that is not calibrated to the actual risk profile of the business can either over-screen (rejecting legitimate customers) or under-screen (missing actual risk). Calibration requires feedback: tracking false positive rates, monitoring SAR quality, and adjusting rules based on regulatory feedback from examinations.
Axiom: CALIBRATION IS ONGOING
These choices define the regulatory defensibility, operational efficiency and vendor dependency of the compliance programme.
Impact: Build for businesses with unusual risk profiles or high alert volumes where commercial platform costs are prohibitive. Commercial platform for regulated financial services where proven system defensibility matters to regulators.
Impact: Integrate Sumsub or Jumio for document verification and identity checks. Build the workflow orchestration and case management around them. Building verification capability in-house is rarely justified.
Impact: Never build sanctions screening in-house. The regulatory and financial risk of a gap in list coverage or matching quality outweighs any cost saving. Comply Advantage for most FinTech. Refinitiv for regulated FI with regulatory expectation of institutional data quality.
Impact: Hybrid is standard: automated pre-population of SAR fields from case management data, compliance officer review and approval, automated submission via regulator API. Fully automated SAR filing without human review is not appropriate — SAR quality matters for regulator relationship.
End-to-end compliance automation — KYC workflow, AML monitoring, sanctions, SAR generation, audit trail, compliance dashboard.
Transaction monitoring overlay for an existing payment or exchange platform — rule engine, alert workflow, case management.
Automated customer onboarding with risk scoring, document verification, PEP/sanctions checks, tiered approval workflow.
Automated regulatory reporting — EMIR, MiFID II, SAR, CTR. Data pipeline from transaction systems to regulator submissions.
Compliance examination preparation tool — extract, organise, and present compliance records in regulator-ready format.
Third-party data providers with custom workflow orchestration.
Stack: Sumsub / Jumio (verification), Comply Advantage (AML screening), Refinitiv World-Check, ONCHAINID (crypto KYC), DocuSign (agreements)
Stack: Node.js / Python rules engine, PostgreSQL (transaction data), Redis (real-time screening cache), Kafka (transaction event stream), ML models (anomaly detection)
Stack: Custom workflow engine, PostgreSQL (cases, decisions), React (analyst UI), Audit log (append-only), SAR template engine
Stack: Regulatory XML generators, EMIR/MiFID II formatters, FinCEN SAR format, Automated submission API, Compliance dashboard
A breach of a KYC database or SAR filing system is a regulatory event, not just a security incident.
SAR filings are legally privileged — disclosure to the subject of a SAR (tipping off) is a criminal offence in most jurisdictions. SAR data must be isolated from systems accessible to customer-facing staff.
Compliance records must not be modifiable after creation. Append-only audit log with cryptographic hash chaining provides tamper evidence. No admin user can modify historical compliance records.
Compliance analysts must have access to investigation tools but not to customer funds or payment functions. Strict RBAC between compliance and operational systems.
AML records must be retained for 5-7 years (jurisdiction-dependent). PII subject to GDPR right-to-erasure requests must be carefully handled — erasure of PII while retaining compliance records (with pseudonymisation) satisfies both obligations.
Regulatory requirements inventory, risk profile assessment, automation scope definition.
Verification provider integration, risk scoring, tiered approval workflow.
Rule library, alert configuration, ML model integration, false positive tuning.
Alert triage workflow, investigation tools, decision documentation, SAR drafting.
Regulatory report generators, automated submission infrastructure.
Append-only compliance log, retention management, examination export.
False positive rate analysis, rule tuning, compliance team training.
We build the technical infrastructure for: AML/CTF (FinCEN in the US, FCA in the UK, AUSTRAC in Australia), sanctions (OFAC, UN, EU), EMIR and MiFID II trade reporting, FATCA/CRS for tax reporting, PSD2 for payment services, and the specific requirements of crypto asset regulatory frameworks (MiCA, VARA, FCA crypto registration). We are engineers — your legal and compliance team defines the specific obligations; we build the systems that automate them.
False positive reduction is a calibration exercise, not a one-time configuration. We start with conservative (wider) rules, measure the false positive rate against your transaction profile, and progressively narrow rules while monitoring that true positive detection does not drop. Peer group analysis (comparing customer behaviour against similar customers) is more effective than absolute thresholds for most retail transaction monitoring.
Yes. We integrate with commercial AML platforms (NICE Actimize, Napier, Temenos) via their APIs, adding custom workflow orchestration, reporting layers, or additional data enrichment. We also build overlay systems that add capabilities missing from the commercial platform.
Our rules and anomaly detection engines process transaction streams in real time using Apache Flink and Kafka. They detect structuring (smurfing) across split transactions, rapid movement of funds between newly opened accounts, sudden velocity spikes, geographic inconsistencies, and high-frequency circular payments, generating risk-weighted case alerts before funds are released.
We implement end-to-end Travel Rule compliance using the universal IVMS101 data standard. The integration layer coordinates counterparty VASP discovery, validates entity identities, securely exchanges PII data through encrypted channels, and automates transaction holding/release decisions in accordance with FATF Recommendation 16.
All compliance events — including KYC submissions, risk score changes, manual investigator decisions, and alert closures — are written to append-only, tamper-evident audit logs with cryptographic hash-chaining and WORM (Write Once, Read Many) compliant storage. This provides mathematical proof that records have not been altered during regulatory examinations.
Yes. When an investigator escalates an alert to a confirmed suspicious activity case, the platform auto-populates standardised regulatory report templates (such as FinCEN SAR XML or national FIU formats) with transaction histories, customer profiles, and timeline narratives, allowing one-click batch submission via secure regulatory APIs.
We support air-gapped on-premises deployments, dedicated private VPC instances (AWS GovCloud, Azure Government, or local sovereign clouds), and hybrid models. All sensitive customer identifying data (PII) is encrypted at rest using customer-managed KMS keys (envelope encryption) and in transit with TLS 1.3, ensuring strict compliance with GDPR and banking secrecy mandates.