Compliance is often treated as an afterthought in early-stage fintechs—but that mindset could be the very thing that stalls your growth. In this episode of Ignite, we sat down with Ravi de Silva, founder of DeRisk Partners and former Global Head of Compliance Testing for Financial Crimes at Citi, to talk about what founders, VCs, and even seasoned financial institutions are getting dangerously wrong about compliance today.
With senior roles at JPMorgan and American Express, and now helping startups and mid-sized banks navigate global regulations, Ravi has a rare insider view—one that every fintech leader needs to hear.
Here’s what stood out from our conversation:
Startups Still Get Compliance Wrong
Many early-stage companies delay building out compliance until it’s required—usually by regulators or enterprise clients. By then, it’s reactive and expensive. Ravi sees this all the time: companies rush to assemble frameworks after landing a big deal or applying for a license. But once a company surpasses $1B in AUM, it’s already under scrutiny.
Key takeaway: Build compliance into your DNA from the beginning. Strategic compliance isn’t a cost center—it’s a growth enabler.
The AI Audit Gap
One of the biggest blind spots Ravi warns about? The lack of explainability in AI models.
Whether it’s AI-driven lending or transaction monitoring, regulators want to know:
How was the model trained?
What data was used?
Can the outcome be explained and defended?
Without transparency, startups risk non-compliance—even if the model performs well technically.
Pro tip: Use AI to enhance automation, but ensure human oversight on decisions. Countries like Singapore are already requiring this.
Sanctions: The Silent Threat
Ravi ranks sanctions compliance as the most underrated global risk today. With the geopolitical landscape shifting rapidly, new sanctions and trade restrictions can pop up overnight. Many companies unknowingly fall afoul due to indirect exposure—especially in crypto and cross-border fintech.
To help clients stay ahead, DeRisk Partners provides 72-hour playbooks for sanctions response—especially in volatile regions like the Gulf.
Watch out for: Secondary sanctions, export controls, and complex ownership structures that can obscure risk.
Scaling Globally? Think Locally
DeRisk’s recent expansion into Lucerne, Switzerland (with offices supporting Dubai and Singapore) reflects a major trend: fintech is global, but compliance is local.
From the 10% regulatory differences in every country to cultural resistance in markets like Switzerland or Asia, U.S. fintechs must localize their compliance strategy.
Bottom line: Build region-specific expertise early. “It’s not a U.S. company in Switzerland,” Ravi says. “It’s a Swiss company with U.S. affiliation.”
For VCs: Red Flags to Watch
When evaluating fintechs, Ravi urges investors to look beyond product and market fit. Ask:
Is compliance integrated with the product strategy?
Who owns compliance decisions?
Is there a fractional CCO or experienced partner involved?
“Partnering with a bank doesn’t absolve risk,” he warns. “If compliance is a bolt-on, not a core value—it will catch up to you.”
What’s Next in Regulation?
Ravi points to MiCA (Europe) and VARA (Middle East) as leading blueprints for crypto regulation. While the U.S. still lags in crypto-specific laws, bills like the Genius Act could signal a shift toward clearer frameworks.
And for those hoping compliance will slow them down? Ravi disagrees: “When you’re small, it’s faster and cheaper to implement frameworks. Waiting only makes it harder.”
Final Thoughts
Ravi’s message is clear: compliance isn’t a checkbox—it’s a competitive advantage when built correctly.
Whether you're a founder scaling fast, a VC evaluating risk, or a financial institution partnering with fintechs, the stakes are higher than ever. Strategic compliance can unlock partnerships, streamline audits, and protect long-term innovation.
If you’re not thinking about this now—you’ll be forced to later.
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Chapters:
00:01 Intro and Ravi’s background
01:04 Early career journey and transition into compliance
02:38 Lessons from Citi and JPMorgan
04:11 Founding DeRisk Partners
05:27 Why startups delay compliance
07:39 The AI audit gap in fintech
09:24 Risks in sponsor bank partnerships
11:20 Sanctions compliance and secondary exposure
13:42 Global expansion to Switzerland, Dubai, and Singapore
15:35 Using AI in compliance workflows
17:34 Challenges of selling compliance globally
20:10 Compliance red flags for VCs
22:05 Regulatory trends: MiCA, VARA, and global crackdowns
23:31 U.S. crypto regulation and the Genius Act
25:08 Balancing speed and compliance in early-stage startups
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