P084 - RegTech solutions for whistleblower case management: between regulatory expectations and effectiveness

• In Event: Poster Session & Ice Cream Social

Abstract

Financial crime prevention scores high on the agenda of regulators around the world. Law enforcement relies on private policing strategies of business to prevent and control financial crime, imposing regulatory expectations and turning private companies into co-regulators (and co-investigators). While the use of new technologies for financial crime prevention is inevitable, yet it is not known how existing RegTech solutions are influencing internal processes inside the firm (compliance, data management, IT security), whether they meet the expectations of legislators, or to what extend they really contribute to crime reduction and prevention. To start with, the project explores whistleblower case management as a case study to benchmark the effectiveness of RegTech solutions towards existing regulatory expectations for security, confidentiality, operability, and collection of evidence. Secondly, the smart regulation paradigm is discussed to find out whether whistleblowing reporting solutions are able to facilitate private policing of corporate misconduct (Brand, 2020). Thirdly the author adopts organizational perspective by exploring whether whistleblower reporting solutions solve existing agency problems and costs inside compliance departments (Smaili et al., 2022). While there is a growing body of literature about private policing strategies in financial sector, just recently authors started focusing the role of new technologies in the process of economic crime prevention and control. The poster aims at setting the theoretical background for further empirical research on effectiveness of RegTech solutions for financial crime prevention.

Author

• Elina Karpacheva-Hock, Anglia Ruskin University, UK