How We Built a RegTech Reporting System for Cross-Border Payments and EU Compliance

In today’s regulatory landscape, ensuring compliance with international tax authorities has become a complex and time-consuming task for payment service providers (PSPs). With cross-border transactions increasing in volume, the challenge of reporting these transactions accurately and following each country’s specific requirements has grown significantly. To address this challenge, we were outsourced by a global accounting firm to enhance and expand a reporting system designed for payment providers operating across multiple countries.

The Challenge: Streamlining Reporting for Cross-Border Transactions

Global tax regulations present a range of challenges for PSPs, especially when complying with multiple tax authorities, each requiring unique reporting formats and submission processes. Our role was to take an existing system that had the foundation for compliance reporting and transform it into a robust, user-friendly solution that could efficiently meet the evolving needs of PSPs.

We enhanced the system’s functionality and added new features aimed at improving efficiency and providing PSPs with greater flexibility in managing their submissions across different jurisdictions.

Our Contribution: Enhancing the Compliance-Focused Reporting System

Our team made significant improvements to the system, boosting its performance, usability, and automation capabilities. We introduced several new features that simplify the compliance process for PSPs.

The system allows PSPs to upload cross-border transaction data for each country they operate in. Once the data is uploaded, the system automatically generates the required reports for each tax authority, ensuring compliance with the specific regulations of each jurisdiction. Our improvements streamlined this process, enabling PSPs to handle larger datasets with improved processing times and accuracy.

For tax authorities that support electronic submission via APIs or FTP, we automated much of the reporting process. Although users must initiate the submission, the system handles everything from data validation to final submission to the relevant authorities once triggered.

Key Technologies and Innovations

• Azure Cloud: Azure provides a scalable cloud infrastructure to handle large transaction volumes securely.
• Azure Message Queues: We integrated Azure message queues to ensure the smooth, asynchronous processing of large datasets.
• Vite and React: These technologies overhauled the user interface, making it more responsive and user-friendly.
• C# and .Net: The core backend system was built using C# and .Net, providing a reliable foundation for transaction processing and report generation.
• Python: Python scripts were added to automate critical data processing tasks and streamline the generation of reports.
• Azure DevOps and CI/CD: Continuous integration and delivery pipelines ensured that new features and updates could be released efficiently, without disruption.

Conclusion: Driving Compliance Innovation Through Continuous Improvement

Our involvement in this project led to significant improvements in the system’s performance, usability, and functionality. By introducing new features and optimizing the reporting process, we’ve helped PSPs achieve greater efficiency in their compliance efforts.

As tax regulations continue to evolve, our system provides PSPs with the flexibility and reliability they need to stay compliant with cross-border reporting requirements. This project demonstrates the value of continuous improvement in RegTech, and we are proud to have played a key role in enhancing a solution that supports PSPs across the globe.