{"id":7613,"date":"2023-09-22T11:50:48","date_gmt":"2023-09-22T19:50:48","guid":{"rendered":"https:\/\/live-cometml.pantheonsite.io\/?p=7613"},"modified":"2025-04-24T17:13:54","modified_gmt":"2025-04-24T17:13:54","slug":"nlp-techniques-used-for-compliance-checks","status":"publish","type":"post","link":"https:\/\/www.comet.com\/site\/blog\/nlp-techniques-used-for-compliance-checks\/","title":{"rendered":"NLP techniques used for compliance checks"},"content":{"rendered":"\n\n\n\n\n
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AI-powered applications and solutions have become a major catalyst when it comes to compliance checks, particularly in NLP. The aim of this article is to go through NLP techniques and how you can apply them to your company’s compliance process to make it easier and more efficient.<\/p>\n

We have all had to adapt to the impacts of Covid-19 causing more and more companies to realize the importance and impact of digitalization. One of the significant issues that compliance faced during the pandemic was the lack of accuracy and quality as people were working from home.<\/p>\n

Let\u2019s first quickly go over some definitions for the point of this article:<\/p>\n

Natural Language Processing (NLP)<\/strong> is the ability of a computer\/software\/application to be able to detect and understand human language through speech and text, just the way we humans can.<\/p>\n

Compliance checks<\/strong> are the process of focused reviews and analysis to check whether the controls put in place and the outputs produced to meet the security requirements that have been implemented into the security and risk treatment plans.<\/p>\n

Why are compliance checks important?<\/h1>\n

Having the right compliance checks put in place can save a lot of companies time and money. If your company does not follow the correct protocols, they are at a high risk of fines and penalties.<\/p>\n

Let\u2019s take the banking industry for example. The banking industry uses the Know Your Customer (KYC) process to help with compliance checks. KYC is a set of standards that are designed to protect financial institutions against money laundering, fraud, and other acts of corruption such as terrorist financing. The KYC process is used to perform mandatory checks in identifying and verifying the client\u2019s identity.<\/p>\n

We\u2019ve all seen the rise in cyberattacks and fraudsters, some may have even asked you to help out. Therefore, the fight to ensure that compliance checks are done correctly is more important than ever.<\/p>\n

According to the National Audit Office in the UK, the Government\u2019s \u00a347bn emergency lending scheme<\/a> abused many KYC regulations due to a lack of compliance checks such as identity checks. Due to this, it was estimated that around 11% of loans were fraudulent.<\/p>\n

Current issues with traditional compliance management<\/h1>\n

Compliance management comes with its own difficulties:<\/p>\n