Authoring Models of Regulations

Modern enterprises operate in an unprecedented regulatory environment with the possibility of heavy penalties for non-compliance. Previous research in the field of compliance has established that the manual specification/tagging of the regulations not only fails to ensure their proper coverage but also negatively affects the turnaround time both in proving and maintaining the compliance. The contribution in this chapter is a framework that aids the domain experts in the transformation of regulations present in legal natural language text (English) to a model form via authoring and validation of structured English rules. This generated regulatory model is eventually translated to formal logic that enables formal compliance checking contrary to current industry practice, that provides content management-based, document-driven, and expert-dependent ways of managing regulatory compliance. The authors draw statistics from a real-world case study of money market statistical reporting (MMSR) regulations for a large European bank to demonstrate the benefits of aided authoring and validation.