About Paragex

We built the tool we needed when we were the compliance team.

Our Story

Why We Built Paragex

Our co-founder Sofia Mendez spent six years as Head of Regulatory Affairs at a mid-size US bank. In 2022, her team missed a FFIEC guidance update on third-party risk management because it arrived as a 78-page PDF during examination preparation. The finding cost three months of remediation work and a consent order item. The gap was not a lack of diligence - it was a structural capacity problem. No team of six compliance analysts can read everything regulators publish.

After leaving the bank, Sofia partnered with NLP engineers to build the parsing stack she wished she had. The initial version ran on a single Python script and a vector store. It caught the next three FFIEC updates before the bank's manual review process flagged them. That proof of concept became Paragex.

Today Paragex monitors 38 regulatory feeds, processes documents in 43 milliseconds per clause, and runs production compliance workflows for banks, asset managers, and fintech firms operating across US, EU, and UK jurisdictions.

Compliance team reviewing regulatory documents at a financial institution office
By the Numbers

Where we are today

38

Regulatory frameworks covered across US, EU, and UK

4,200+

Regulatory documents parsed monthly across all customers

97.3%

Clause extraction accuracy on held-out regulatory test sets

43ms

Median clause extraction latency per regulatory paragraph

Results

What our clients achieve

Regional Bank - US Southeast

Catching FFIEC updates before examination

A 12-person compliance team was triaging 60+ regulatory publications per month manually. Important FFIEC guidance on model risk management was being read weeks after publication, reducing remediation lead time.

Paragex flagged a new model risk circular and mapped it to three outdated control descriptions within 4 hours of publication - 18 days before the team's manual review cycle reached it.

18 days Earlier gap detection on average regulatory change
Asset Manager - London

DORA readiness for Article 28 ICT third-party obligations

An EU-regulated asset manager needed to map DORA's Article 28 through 44 requirements to its vendor management controls before the January 2025 effective date. The existing control inventory was in SharePoint with inconsistent naming.

Paragex ingested the DORA final text, extracted 187 obligation clauses, and mapped 164 of them to existing controls. The 23 gaps were assigned to owners in Jira with due dates pre-set to the regulatory deadline.

23 gaps Identified and assigned in under 6 hours vs. estimated 3-week manual project
Fintech - San Francisco

BSA/AML obligation tracking across product expansions

A payments fintech expanding from ACH to wire transfers needed to assess whether its existing AML program covered new FinCEN obligations for wire transfers above $3,000. Two analysts had been mapping by hand for three weeks.

Paragex mapped the relevant FinCEN rules to the firm's control framework in 2 hours and identified 7 obligations with no matching control - including a record-keeping requirement the team had overlooked.

7 gaps Found in 2 hours including one critical record-keeping gap missed in manual review
What We Stand For

How we work

Accuracy before speed

Compliance teams cannot act on wrong information. We validate extraction accuracy on every regulatory framework before adding it to the platform. Our 97.3% clause extraction rate reflects what we actually measured on held-out Basel IV and DORA texts - not a target we aspire to.

No black boxes in compliance

Every gap finding in Paragex links directly to the source clause in the original regulatory document and the matched control in your library. You can check our work at any point. Examiners expect evidence; we make it available by default.

We work with what you have

Compliance teams have spent years building control libraries in Archer, SharePoint, and GRC tools. Paragex does not ask you to migrate. We connect to your existing systems and add a layer of regulatory intelligence on top of what is already there.

Regulatory discipline runs deep

Our team includes former bank examiners, GRC implementation consultants, and compliance officers. The product decisions we make are informed by people who have sat across the table from examiners and worked through consent orders. That context shapes every feature.

Want to learn more?

Talk to our team about your regulatory scope and we will show you exactly how Paragex handles your frameworks.

Get in Touch