Compliance

Compliance (regulatory compliance) means conforming to comply with relevant laws and regulations. Together with KYC Spider in Zug Eurospider has in-depth compliance know-how.

On December 13, 2019, an interdepartmental work group presented its report Challenges of Artificial Intelligence commissioned by the Federal Council. Section 1.6.16 addresses the use of artificial-intelligence in the judicial system. The matter of compliance is also relevant here. The European Ethical Charter on the Use of Artificial Intelligence in Judicial Systems and their environment distinguishes between four types of use: “uses to be encouraged”, “possible uses, requiring considerable methodological precautions”, “uses to be considered following additional scientific studies”, and “uses to be considered with the most extreme reservations”. What does this mean specifically in terms of compliance?

Assistance systems exist in a variety of forms. The simplest passive systems are limited to recommendations and warnings, which people can either heed or ignore. Digital assistants that carry out conversations are more complex. The easiest ones to develop are digital assistants that control the conversation – yet these assistants are anything but trivial. The assistant asks questions and the person answers them. This makes it possible to formulate questions that based on previous answers. More sophisticated assistants bring users out of an “anomalous state of knowledge” (ASK).

Chains of trust play an important role in digital processes. Just like in everyday life, the question is: who trusts whom, and why? The relationship isn’t necessarily symmetrical: party A may trust party B, but B doesn’t necessarily trust A. However, the relationship usually is transitive: if party A trusts party B and party B trusts party C, then A can also trust C. These chains of trust also play an important role in the digital world

Automatically created documents play an important role in digitalized compliance processes. Publications are also created algorithmically outside of compliance processes. A well-known example is MIT’s fake papers, which were submitted to academic journals and, surprisingly, accepted [1]. On October 8, 2019, an employee of the Springer publishing house presented the first chemistry book written by a computer at a conference in Osnabrück. The book is not fake – it is intended as a serious publication. It cost EUR 100.99 on Amazon on the day of the conference, but can be downloaded free of charge as a PDF from the Springer website. One of the attendees did exactly that and checked whether the newly appointed Nobel Prize winners in chemistry appear in the Springer book.

In a recent expert article, we introduced the one-coin blockchain. According to FINMA Guidance 02/2019 [1], full identification will be requested from third parties in certain situations. How is this problem related to the one-coin blockchain? An understanding of this problem is important not least because the FINMA requirement is related to what is known as FATF Recommendation 16 [2].

Complete Revision of the Federal Data Protection Act

The complete revision's draft of the Federal Data Protection Act is currently in political consultation. Data Protection is to be increased by giving people more control over their private data as well as reinforcing transparancy regarding the handling of confidential data.

Links: draft, report

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