Aspects Of The Effective Know Your Customer (KYC) Compliance

With every business relationship where clients engage, there is always a sizeable network of complex and hidden relationships which can negatively impact the business. First and foremost, evaluate customers and clients for their adherence to applicable financial crime compliance mandates. Nextly, finding gaps and securing due diligence process associated with KYC guidelines. Always stick to authentic screening and risk management processes to satisfy regulatory expectations with confidence. Access complete information of the clients, watchlist screening, optimize and efficiently managing due diligence process should be the goal to mitigate risks and maintain public trust.

Robust intelligence and uniform workflow can strengthen to mitigate risks, to create cost savings and operational efficiencies in the financial industries. Financial crimes like bribery and corruption has been a pivotal issue in the global arena for many decades and authorities and regulators are constantly looking forward for new ways to track down and prevent financial crime. However, the crimes are committed every single day and governments across the globe are constantly prosecuting financial criminals. Some of the related problems shattered and isolated compliance processes with frequent manual interventions and delays in the process. Also, end-to-end supervision of compliance with respect to guidelines and regulations are mandatory as well as the cases should be transparent and intact.

Nonetheless, most banks contain flaws namely the set of questions are not aligned with the regulatory objectives. Low-quality and unstructured data lies with few banks without being fully integrated. So, that leads to difficulties with client reference data and document sharing as well as data extraction from flawed databases. While some of the third-party products have demonstrated handy and some popular databases lack some essential customer data. For sample more, names missing the birth date for the clients or the UBO. When data quality suffers so does the quality of the model as well. The quality of the static data or transactions monitoring in problem-solving operations makes it tough to adjust for policy changes and client behaviours. So, this pushes up the volume of investigations and results in irregularly high false positive rates. The crucial part is if banks staff are lacking expertise/inexperienced employees especially during offshoring the amount of investigation effort will continue to increase. In this scenario, they will not understand the complexities involved and therefore miss risks and they might also solve process issues rather finding the root causes of problems. So, finally inexperience staff leads to very high escalation rates.

Some of the effective approaches to pass the KYC process are as follows:

• to streamline end-to-end process
• single source of documents
• advanced analytics and problem-solving operations
• human intervention and practical method
• regulatory technology partnerships
• legal and regulatory compliance.