November 17, 2025
In the global financial market, compliance has ceased to be just a regulatory obligation and has become a strategic factor for competitiveness. With clients increasingly attentive to the security of their data and regulatory bodies strengthening requirements, companies that do not integrate compliance from the outset of their processes end up facing barriers to growth, especially in international markets.
It is in this scenario that the concept of embedded compliance — also called compliance by design — arises. It is a way of structuring financial products and services with regulatory rules and internal controls already integrated.
But after all, what does this mean in practice? How does embedded compliance differ from the traditional? And why is it so essential for fintechs that want to scale globally? Let’s delve into these answers and show how Azify is helping companies innovate safely.
What is embedded compliance?
The embedded compliance is the integration of regulatory standards and good governance practices directly into a company's systems, APIs, and operational flows.
Unlike traditional compliance, which is often treated as an additional layer or a parallel department, the embedded model is born within the architecture of the solution. This means that:
Internal controls and risk monitoring are automated;
Anti-money laundering (AML) and Know Your Customer (KYC) are already incorporated;
Audits are facilitated because data is organized and traceable;
Adaptation costs are reduced since compliance is not a rework but part of the process.
In summary: embedded compliance does not delay innovation, but enables global launches with security.
Informational content. It does not constitute an offer of securities, foreign exchange, or payment services. Past performance does not guarantee future results. Azify acts directly or through duly authorized partners, as per the scope.
What are the benefits of incorporating compliance by design?
Adopting embedded compliance brings direct and measurable benefits to fintechs, digital banks, and financial platforms. Some of these include:
Reduction of legal and reputational risks – Companies that do not comply with regulatory requirements may face million-dollar fines or even suspension of operations. Incorporating rules natively drastically reduces this risk.
Agility in product launches – Instead of adapting each solution to different legislations after development, embedded compliance allows new products to be ready to operate in multiple jurisdictions.
Global scalability – Fintechs looking to operate in different countries face specific legislations. The embedded model makes this adaptation simpler and less costly.
Reliability with investors and clients – Reputation is one of the greatest assets of any financial institution. Demonstrating that compliance is part of the operation's DNA increases market confidence.
What are the recommended structures and practices?
For embedded compliance to be truly effective, it is important to follow good structural practices:
International regulatory mapping: understand the requirements of agencies such as Bacen, CVM, SEC, and ESMA to align products from the start.
KYC and AML (anti-money laundering) automation: ensure customer identification and transaction monitoring in real-time.
Continuous auditing: reports and audit trails must be integrated into the system.
Modular architecture: API solutions allow for quick updates when new rules emerge.
Organizational compliance culture: technology alone is not enough; teams must be trained to think compliance at every stage.
Practical applications: from theory to result
In practice, embedded compliance can be observed in different situations:
Digital onboarding of customers: fintechs that integrate automated identity validation can approve registrations in minutes without compromising regulatory compliance.
International payments: companies that process multiple currencies need to ensure that each transaction is in accordance with local and international anti-illicit regulations.
Launch of digital wallets: by integrating APIs with embedded compliance, the approval time decreases, and market entry is accelerated.
A concrete example is Azipay, a solution from Azify that combines embedded compliance with multi-currency support. It enables local and international payment operations seamlessly, always in compliance with Brazilian and global rules.
Integration via APIs and modular solutions
One of the significant advantages of the embedded model is the technological flexibility. Through pluggable APIs, fintechs can integrate compliance modules into their systems without needing to build everything from scratch.
In practice, this means that:
A company can start by offering local payments and then expand to international operations with the same technological base.
Embedded compliance updates automatically as regulatory changes are incorporated by Azify.
The integration is modular: it is possible to choose only the necessary blocks (KYC, AML, multi-currency, etc.), reducing costs and implementation time.
How does the regulation work and what are the requirements of the Central Bank?
In Brazil, the Law 14,478/2022 and the resolutions of the Central Bank have reinforced the importance of compliance in digital financial models. Additionally, agencies such as CVM and CONAR/CDC are also involved in the protection of investors and consumers.
Some key requirements include:
Continuous monitoring of suspicious transactions;
Mandatory AML/CFT reports (anti-money laundering and combating the financing of terrorism);
Customer data registration and protection;
Transparency in contracts and advertising.
Embedded compliance ensures that these requirements are met natively, reducing the risk of human errors and document inconsistencies.
Informative content. It does not constitute an offer of securities, currency exchange services, or payment. Past performance does not guarantee future results. Azify acts directly or through duly authorized partners, according to the scope.
What are the challenges of implementing embedded compliance?
Although the benefits are clear, some companies face challenges when adopting this model:
International regulatory complexity: each country has its own rules that need to be mapped.
Initial integration cost: it may be higher than maintaining manual controls, although it reduces risks and costs in the long term.
Need for constant updates: financial regulations change rapidly.
The good news is that, with solutions like those from Azify, these challenges are mitigated, as the platform is constantly updated and adjusted to new global rules.
Cases and success examples
Global fintechs that integrated embedded compliance managed to reduce the time to launch new products by up to 40%.
International payment platforms reported a 30% decrease in regulatory incidents after implementing automated compliance modules.
Partner companies of Azify highlight how multi-currency integration and embedded compliance allow them to operate in different countries without needing to recreate the entire regulatory structure.
These cases reinforce that embedded compliance is not just a trend, but a real competitive advantage.
Global compliance trends for international fintechs: what you need to know
The digital financial market is rapidly transforming, and compliance keeps pace with increasingly varied rules across countries. For fintechs looking to operate globally, understanding regulatory trends is as important as adopting scalable technology — and this is where embedded compliance becomes a competitive advantage.
Main regulatory movements shaping the sector
Open Finance and data sharing: the opening of financial data requires more stringent consent frameworks, privacy protection, and data governance. Fintechs must ensure that information flows are auditable and that the customer experience maintains security without losing usability.
PSD2 and strong authentication requirement (Europe): guidelines for authentication and account access drive the adoption of secure APIs and advanced authentication mechanisms. Companies operating in Europe must treat authentication security as a product requirement, not an afterthought.
Oversight and disclosure in the U.S.: the increase in regulatory scrutiny over digital products demands transparency in communications and robust transactional monitoring controls, especially for businesses connecting to U.S. investors or markets.
International standards for combating illicit activities (FATF): global recommendations create a minimum floor for AML/CFT and due diligence expectations, influencing local standards and requiring continuous risk monitoring.
Adapting to multiple regimes without losing speed
The real challenge is not just complying with isolated rules, but in operating with a unified model that adapts to distinct requirements without recreating processes for each country. Successful fintechs adopt three pillars:
Modular architecture: plug-and-play components for KYC, AML, monitoring, and reporting that can be activated or adjusted according to jurisdiction.
Policy automation: compliance rules coded into engines that automatically apply filters, limits, and alerts, reducing manual rework.
Centralized visibility and governance: dashboards and audit trails that allow real-time compliance verification, with logs organized by region and product.
Why this favors multi-currency integration
Multi-currency operations add layers of complexity — from currency controls to local reporting requirements — and require cohesive integration between treasury, payments, and compliance. A solution that combines embedded compliance and multi-currency integration allows for:
Applying local rules by payment route without interrupting the user experience;
Centralizing liquidity and position management in different currencies, maintaining regulatory traceability;
Automating conversions and limits with risk rules already built-in.
Informational content. Does not constitute an offer of securities, foreign exchange, or payment services. Past performance does not guarantee future results. Azify operates directly or through duly authorized partners, as per the scope.
What are the differentiators of Azify in the market?
A Azify offers a modular and API-driven approach that allows the fintech to:
activate specific compliance modules for each market;
integrate multi-currency support without redoing the payment architecture;
update regulatory rules centrally, reflecting local changes quickly.
In practice, this means that your company maintains a single operational core capable of behaving according to the requirements of each country — reducing costs, accelerating launches, and preserving governance. Enabling a strategic partnership for financial companies that seek to innovate securely. Its differentiators include:
Plug-and-play solutions: modular APIs that allow rapid and scalable integration.
Multi-currency support: essential for companies wishing to operate in international markets.
Embedded compliance in all products: from onboarding to global payments.
Continuous regulatory updates: immediate alignment with Bacen, CVM, and other regulatory bodies.
With Azify, fintechs and financial companies can reduce risks, gain speed, and scale globally with security.
Embedded compliance is no longer optional for fintechs that want to grow on a global scale. It ensures regulatory security, client and investor trust, as well as allowing for faster and more efficient product launches.
By adopting solutions like those offered by Azify, your company can transform compliance from an obligation into a strategic advantage, integrating compliance from the foundation of the operation. Talk to our specialists and discover, in a personalized consultation, how to efficiently structure embedded compliance for your business.
