RegTech (Regulatory Technology) solutions represent the synthesis of technology and regulation, aiming to simplify, cheapen, and automate compliance with regulatory requirements for financial institutions. In Georgia, where the National Bank actively implements "Open Banking" principles and digital reporting, RegTech is becoming critically important. Traditional manual compliance can no longer meet modern challenges such as data protection, Anti-Money Laundering (AML), and real-time reporting. Legal services in the RegTech field involve the legal audit and implementation of technological solutions that help banks and fintech companies automatically comply with legislation. It bridges the gap between IT innovation and strict banking regulations.
What Does the RegTech Solutions Service Cover?
Tech-savvy lawyers on our platform offer comprehensive support in implementing RegTech projects:
- Automated Reporting Compliance: Legal support for integration with "SebStat" and other reporting systems to ensure data accuracy and timeliness.
- Electronic Identification (e-KYC): Auditing remote identification software to ensure compliance with the Law on Facilitating the Prevention of Money Laundering and NBG regulations.
- Data Protection (GDPR/PDPL): Checking RegTech tools for compliance with personal data protection standards.
- Open Banking (API) Regulations: Creating a legal framework for information exchange between banks and Third Party Providers (TPPs).
- Software Licensing: Drafting Service Level Agreements (SLA) and License Agreements for procuring and implementing RegTech products.
Common Scenarios and Business Needs
Legal support for RegTech solutions is necessary in the following cases:
- Launching a Fintech Startup: A company creates an app that automatically analyzes client credit risk. It must be confirmed that the algorithm does not violate consumer rights and "fair lending" principles.
- Updating AML Systems: A bank purchases AI-based software for monitoring suspicious transactions. A lawyer must verify if the system meets the requirements of the Financial Monitoring Service.
- Digital Bank Licensing: When creating a digital bank, the National Bank requires an IT audit and confirmation of the compliance of technological processes.
- Reducing Human Error: A bank wants to switch from manual to automated reporting to avoid fines for incorrect data.
Georgian Legal Framework
Regulation of the RegTech field is scattered across several legislative acts. Paramount is the Law of Georgia on Information Security, which sets protection standards for critical information systems (including banks). Also, the Law on Personal Data Protection regulates automated data processing. The National Bank sets specific requirements for the financial sector, such as the "Rule on the Use of Electronic Signature and Electronic Document by Commercial Banks" and remote identification regulations. Regarding Open Banking, Georgian regulations analogous to the European PSD2 directive apply.
Service Process: What to Expect
The lawyer works alongside the IT team and compliance officers. First, a legal analysis of the technical specifications or the existing system is conducted. It assesses where data is stored (Cloud vs Local Server), and how it is processed and transferred. If implementing third-party software, the lawyer checks the vendor's liability and data security guarantees. As a result, the company receives a Compliance Report confirming the system's adherence to the law.
Why Choose Legal.ge?
Technology and law are two different languages. On Legal.ge, you will find lawyers who understand code, APIs, blockchain, and AI. They will help you turn regulations into your competitive advantage rather than a barrier. Implement innovations without legal risks with help from Legal.ge.
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