In 2025, more than 70% of international banks do not pass regulatory exams on the first try, despite colossal investments in compliance and training. Why do the largest market players, having access to the best technologies and experts, face rejections, fines and restrictions?
The answer is simple: banking regulatory exams are becoming not just a formal check, but a real stress test of the maturity of business processes, risk management and digital transformation.
In the context of tightening banking regulation in Europe, Asia and Africa, and constant changes in regulatory acts, even experienced executives and business owners feel the lack of transparent, practical tools for successful preparation.
In this article I, Nikita Veremeev, will share strategies that the COREDO team implemented in dozens of projects for registering legal entities in the EU, obtaining financial licenses, implementing AML services and comprehensive preparation for regulatory exams.
If you want not just to pass another inspection, but to build a sustainable compliance system and scale your business in international jurisdictions – read to the end. Here you will find not theory, but a practical guide based on real COREDO cases and the current requirements for 2025-2026.
Requirements for banking regulatory exams and regulations
Banking regulatory exams: these are comprehensive tests aimed at confirming a bank’s or financial organization’s compliance with the requirements of national and international regulators. Their goal is not only to check the formal presence of policies and procedures, but also to ensure the effectiveness of internal control, risk management, information security and compliance.
Overview of key regulatory acts
In COREDO’s practice, we find that each region imposes its own specific requirements:
- In the EU, the EBA, CRD V, PSD2 directives are in force, as well as national laws regulating Licensing, stress testing and risk disclosure.
- In Asia and Africa the focus is on local standards (MAS in Singapore, SFC in Hong Kong, CBN in Nigeria), but elements of international standards Basel III, FATF and ISO/IEC 27001 are increasingly being introduced.
- In the CIS and Eastern Europe, the provisions of the Bank of Russia play a key role, in particular No. 851-P and the methodological recommendations 3-MR, as well as requirements for software certification and information security.
The latest legislative changes for 2025-2026 include tightening requirements for banks’ stress testing, mandatory implementation of unified macro-scenarios, expansion of the list of AML/KYC procedures and new standards for software certification for banking operations.
Bank of Russia requirements 851-P and methodological recommendations 3-MR
The solution developed at COREDO for clients from the CIS takes into account that as of 2025, the scope of 851-P extends to all credit institutions, including subsidiaries of international banks.
Key elements:
- The PDCA cycle (Plan-Do-Check-Act) as the basis of internal control and change management.
- Implementation of cryptographic protection and anti-fraud technologies (for example, SIM card control, security incident monitoring).
- Software certification with mandatory conformity assessment according to new standards.
COREDO’s practice confirms: preparation for exams is impossible without integrating these requirements into daily business processes.
International AML KYC standards in regulatory exams
AML services and KYC procedures are becoming an integral part of the examination check for companies registering in the EU, Asia and Africa.
COREDO implements automated transaction monitoring systems, analyzes client risks and trains staff to work with international sanctions lists.
Special attention is paid to:
- Verification of beneficiaries when registering legal entities in the EU.
- Integration of digital platforms for storing and processing KYC documents.
- Compliance with FATF, EBA and national regulators’ requirements.
Rules for preparing for banking regulatory exams
Comprehensive exam preparation: it is not a one-time campaign, but a systematic process covering all levels of the company.
Preparation: stages and steps
- Requirements analysis: audit of current policies, procedures, IT systems, identification of “bottlenecks”.
- Development of a preparation plan: assigning responsible parties, creating a roadmap, agreeing on timelines.
- Staff training: conducting trainings on compliance, risk management, AML/KYC, information security.
- Testing and audit: conducting internal stress tests, modeling exam scenarios, independent readiness audits.
The role of executives and business owners is not only to provide resources, but also to personally participate in key stages, shaping a compliance culture.
Preparation for banking regulation exams
COREDO uses a hybrid approach combining international best practices and local requirements:
- Use of a single macro-scenario for stress testing to assess capital and liquidity resilience.
- Implementation of digital platforms to automate data collection and report generation.
- Adaptation of methodologies to regional specifics: for example, in Europe the focus is on disclosure and ESG factors, in Asia on technological resilience and data protection.
Real case: for a client from Singapore, the COREDO team integrated an automated transaction monitoring system, which allowed not only to successfully passMAS exam, but also increase the transparency of business processes.
Risk Management and Fines for Non-Compliance
risk analysis – a key stage of preparation.
COREDO develops risk matrices for clients that take into account:
- Possible violations of requirements 851-П, CRD V, PSD2.
- Errors in stress testing and reporting.
- Insufficient transaction and customer identification control (AML/KYC).
- Issues with certification and operation of banking software.
Table: Risk Management and Penalty Minimization
| Compliance risk | Consequences | Risk mitigation measures |
|---|---|---|
| Non-compliance with requirement 851-P | Fines, restrictions | Implementation of the PDCA cycle, regular audits |
| Errors in stress testing | Incorrect risk assessments | Use of a unified macro-scenario, training |
| Insufficient AML control/KYC | Regulatory sanctions | Compliance automation, anti-fraud technologies |
| Incorrect software certification | License denial | Thorough assessment and certification of software |
COREDO’s practice shows: regular monitoring, compliance automation and staff training allow minimizing risks and avoiding fines.
Preparation for banking regulatory exams for international companies
Preparing companies to operate in Europe, Asia and Africa
COREDO supports clients at all stages, from registering legal entities in the EU to obtaining licenses and taking exams in Singapore, Dubai, the United Kingdom.
Special attention is paid to:
- Aligning internal policies with the requirements of different jurisdictions.
- Implementing unified AML/KYC standards and compliance automation.
- Integrating digital solutions for centralized risk monitoring.
Scaling exam preparation within companies
Scaling requires:
- A centralized platform for compliance and risk management.
- Automation of reporting preparation and stress testing.
- Implementation of comprehensive AML services taking into account national specifics.
The implementation of such solutions at COREDO enabled one European fintech group to pass simultaneous exams in three countries in the EU and Asia, reducing costs by 30% and increasing process transparency.
Features of CIS companies’ preparation for the Bank of Russia’s new rules
From 2025, the Bank of Russia’s new rules require:
- Mandatory integration of the PDCA cycle into internal control processes.
- Increased attention to certification of banking software and information security.
- Implementation of anti-fraud technologies and automated transaction monitoring.
The COREDO team adapted clients’ internal methodologies, which made it possible to successfully pass exams and avoid fines for non-compliance.
Tools for preparing for banking exams
Compliance automation on digital platforms
The technology base becomes the determining factor of success when preparing for regulatory exams.
COREDO implements:
- Platforms for compliance automation (KYC, AML, transaction monitoring).
- Security incident management systems and cryptographic protection.
- Tools for centralized storage and analysis of stress testing data.
Thus, modern compliance and information security tools become the foundation for further anti-fraud solutions.
Anti-fraud technologies for exam preparation
SIM card control, monitoring of anomalies in user behavior, automatic detection of suspicious operations: these solutions have already proven their effectiveness in COREDO projects for banks in the EU and Asia.
Recommendation: integrate anti-fraud technologies not just for “tick-the-box”, but as part of a unified risk management system.
Effective risk management becomes the foundation for a bank’s sustainable development and directly affects its readiness for regulatory inspections; let’s move on to assessing the ROI of such measures.
Assessing the ROI of preparation for banking regulatory exams
Return on investment (ROI) assessment is based on analysis of:
- Reduction in the likelihood of fines and restrictions.
- Optimization of compliance and audit costs.
- Increased transparency and manageability of business processes.
COREDO uses KPI monitoring tools that allow tracking the effectiveness of investments in preparation in real time.
Practical recommendations for successful preparation
- Preparation for banking regulatory exams is a strategic process requiring integration of regulatory requirements into daily activities.
- Use the PDCA cycle to build a system of continuous compliance and change management.
- Implement digital platforms and compliance automation to reduce operational risks.
- Regularly train staff and conduct internal audits to identify and eliminate weaknesses before the regulator arrives.
- Integrate anti-fraud technologies and cryptographic protection systems as part of a unified risk management strategies.
- Assess the ROI of investments in preparation not only by reduced fines, but also by increased transparency, manageability, and scalability of the business.
COREDO’s practice confirms: a systematic approach, based on the best international practices and adapted to the specifics of your jurisdiction, – the key to successful preparation and development of business in the face of tightening banking regulation.