The Standardized Assessment for Risk Management & Compliance (STARC) framework evaluates six Core Compliance Areas (BSA/AML, CMS, TPRM, Complaint Handling, Operational Risk, and Marketing and Product Compliance) across eight Program Elements, using a maturity-based rating system from Level 5 (Rudimentary) to Level 1 (Optimized). Developed from interagency guidance and OCC handbooks, this matrix approach enables nonbanks to systematically assess their compliance posture, recognizing that organizations require different levels of sophistication as they progress from informal, reactive approaches to strategic, automated systems that optimize compliance and create value.
This white paper examines partnership models, market impacts, and regulatory challenges, offering key recommendations to foster innovation while ensuring compliance and consumer protection.
