SaaS

SaaS Compliance

‍BITE is a tool suite that assists companies in multiple domains to reduce risk in their supply chain. Our AI technology assists companies to remain on the right side of compliance through cost-effective, easy-to-use tools.

This document covers information and processes to assist companies understand the risks involved with SaaS company regulatory compliance with regard to sanctions and trade-based regulations.

What is SaaS Compliance

SaaS companies are required - like all other US companies - to abide by regulations and laws that prohibit doing business with certain entities and even specific countries altogether. This can get complicated and hard to navigate especially when companies have a lot of online transactions, but is essential to ensuring regulatory compliance. This document provides guidance and tips on how to stay on the right side of this compliance covering the following domains:

Sanctions: ensuring that your business does not transact with watchlisted or sanctioned entities, such as those listed by Department of Treasury / OFAC.
Trade-based regulations: if your company manufactures, sells or purchases sensitive technology, software, AI or other critical technologies, there may be additional licensing and due diligence requirements in order to sell the commodities
Financial: companies should be careful that they are not being used to launder money and/or support groups such as transnational criminal organizations

Additional compliance domains exist, such as insurance, contractual, payroll, and other areas, which require alternative tools to BITE.

Why is SaaS compliance important

SaaS companies operate in a complex regulatory environment. While SaaS companies don’t have the same level of regulatory compliance as a bank or other financial institution, they do have a need to perform some level of transaction monitoring and due diligence per the bulleted items above covering sanctions, trade/commodity compliance and financial due diligence. The following areas cover reasons why this type of compliance is important:

Risk: Compliance measures assist SaaS companies in identifying and mitigating potential risks associated with their operations. By implementing compliance protocols around sanctions, commodity licensing and anti-money laundering, companies can minimize their exposure to risks and ensure the continuity of their services. Over and above, companies will not be liable for fines from the Federal Government, that can sometimes run into the millions of dollars based on recent enforcement-related actions (See link for examples of fines: Link)

Competitive Edge: Compliance can give SaaS companies a competitive edge in the market. Demonstrating a commitment to compliance showcases the company's professionalism, ethical standards, and dedication to protecting customer interests. This can help attract potential customers who prioritize data security and compliance when choosing a SaaS provider.

Trust: Compliance builds trust among customers, stakeholders, and business partners. By adhering to industry standards and regulatory requirements, SaaS companies demonstrate their commitment to ethical practices and customer protection. A solid reputation for compliance can enhance the company's brand image and increase customer loyalty.

Ethical Responsibility: Compliance reflects a SaaS company's ethical responsibility to its customers, employees, and the wider community. It ensures that the company operates with integrity, fairness, and transparency. By complying with laws and regulations, SaaS companies contribute to a safe and trustworthy digital environment.

What are the rules you need to adhere to: There are several compliance control rules, statutes and regulations that need to be adhered to, but SaaS companies should be aware several other statutes pertaining to money laundering, conspiracy, and false statements can be additionally charged for egregious, willful violations.

For trade-specific regulations, these include, but not limited to the Bank Secrecy Act, Export Control regulations, Sanctions statutes, 19 U.S. Code § 1307 and more.

For a full list of regulations and statutes relevant to SaaS companies, please log into our app to get access to the full Playbook.

How does BITE Help:

The BITE Playbook, available in the BITE app, helps you navigate these regulatory requirements and quickly understand which agencies enforce what regulations associated with your specific transaction as well as a mapping for how each BITE module helps you remain compliant with specific regulations.

BITE Data: our BITE Playbook maps directly to watchlists, Harmonized Schedule codes and commodity screening lists, allowing you to quickly check a commodity or person against the extensive filters in our platform.

BITE includes extensive, in-depth training modules to help users get set up for success and walk you through how to stay on the right side of compliance.

Unlock the full playbook.

For access to the full Playbook, Training Resources, and further Regulatory Information: