Business Context & Problem
Client
A global fintech company operating in the US, EU, India, and APAC regions, subject to continuous regulatory scrutiny and audits.
Challenge
- Regulatory frameworks (e.g., GDPR, HIPAA, RBI circulars, SEC filings) evolve frequently and asynchronously across jurisdictions.
- Internal policies are documented in scattered formats — PDFs, SharePoint docs, intranet wikis.
- Compliance, legal, and risk teams often miss subtle updates, resulting in audit delays, non-compliance penalties, or reputational risk.
- Manual regulatory tracking is time-consuming, inconsistent, and prone to interpretation errors.
Need
A proactive, intelligent compliance assistant that can:
- Monitor official sources (e.g., government portals, SEC bulletins, RBI notifications)
- Map these changes to internal policies or practices
- Highlight mismatches or gaps with citations and traceability
- Automate audit readiness with consistent summaries and change logs
GirdLab’s Solution: A Dynamic Regulatory QA System
Built using GirdLab’s Agentic + RAG + VectorDB framework, the solution offered:
- Live ingestion of regulatory feeds (RSS, web scrapes, PDFs, JSON APIs)
- Retrieval-Augmented Generation (RAG) over internal compliance repositories and SOPs
- Agents to map external → internal gaps
- Change-tracking summary generation for legal and compliance stakeholders
- Explainable, timestamped insights with source attribution
System Architecture (Key Layers)
Ingestion Layer
- Web scrapers + RSS readers for regulatory websites (e.g., SEC, RBI, FCA, MAS)
- PDF parsers for official bulletins
- Real-time sync with internal policy stores (e.g., Notion, SharePoint, Confluence)
Vector Store (Retrieval Base)
- Indexed embeddings of historical policies, past audit notes, SOPs, guidelines
- Separate index for external rules + amendments
- Semantic matching between external clauses and internal policies
Agent Stack
- ChangeDetectionAgent: Compares new rules vs. historical baseline
- GapMappingAgent: Checks for alignment between external mandates and internal documentation
- AuditResponseAgent: Prepares response drafts, justifications, or recommended updates
- NotifierAgent: Triggers email/Slack alerts with summaries and citations
Output Layer
- Web dashboard with diff view (old vs. new policy snippets)
- Slack channel summaries (e.g., “GDPR retention update not reflected in SOP-14”)
- PDF generator for audit trail and compliance logs
Example Prompts & Outputs
Prompt
“What has changed in GDPR policy on cross-border data flow in Q2 2024?”
Response
“Clause 27(a) introduces mandatory SCC templates for EU → India transfers. Your internal policy P-147 (Data Flow) last updated in Nov 2023 lacks SCC integration. Action recommended: initiate policy patch and DPO notification.”
Business Outcomes
| Metric | Impact |
|---|---|
| Compliance gap detection | 75% faster identification of policy misalignment |
| Regulatory latency | Reduced time from change detection to implementation from 3 weeks → 48 hours |
| Audit preparedness | Always-on compliance log reduced manual prep time by 60% |
| Cross-jurisdictional clarity | Traceable gaps across 5 regions helped legal unify response workflows |
Security, Trust, and Explainability
- Every LLM insight traceable back to document and paragraph
- Human review loop before pushing updates to policy base
- Role-based access for regional compliance heads
- Watermarked outputs and change logs for legal recordkeeping
Why This Works with RAG + Agents
- RAG provides grounded answers from regulatory sources — no hallucinations
- Agents orchestrate multi-step actions — compare → analyze → summarize → notify
- VectorDB enables semantic matching between unstructured external rules and internal policy texts
- LLMs reduce interpretation fatigue, while still giving control to legal teams
Future Enhancements
- Live API integration with government databases (e.g., EDGAR, MCA)
- Auto-policy redlining and version control
- Integration with Docusign/Compliance LMS for auto-distribution of updates
- Agent feedback loop: reinforcement-based training on legal reviewer approvals
