Quick, effective client onboarding and monitoring are essential for both a competitive advantage and compliance with global anti money laundering (AML) and know your customer (KYC) regulations. Though the recent upset with US banks quickly highlighted inefficient processes, there is a constant challenge in balancing compliance effectiveness with a great customer experience. Our industry practice leads advise that the balance is achieved by evolving your onboarding process. During a recent webinar, they shared the areas to consider as you do so:
Take the time to review your compliance risk assessments and map out your processes. This encompasses a few steps:
Take time to do a regular review of your risk assessments or risk frameworks, this helps you identify potential compliance risks. A regular review can also provide insights into effective deployment of your resources for a better use of time and energy.
Build out the process flow on responsibilities to onboarding a client on your main products. Who needs what and when?
Pick one area that where a small change will allow you to get a quick win. Talk to the operations teams performing the work, are they experiencing scope creep that is not in your policy/procedures?
Effective use of data and analytics to track metrics and analyze trends enables a proactive approach to mitigate risks and address potential issues in real-time.
Keep your knowledge current. Attend industry events, participate in webinars, and follow industry publications. Be aware of regulatory changes, proactively prepare for them and ensure that teams are aware of the potential impacts.
Compliance monitoring with automated alerts and reporting allows for the identification of potential compliance issues in real-time and to take proactive measures to mitigate risks.
Aligned compliance efforts are most effective and help eliminate redundant operational efforts across the organization. Sharing information, best practices and coordinating a compliance roadmap ensures proper resources are allocated to implement necessary changes.
Moody’s Analytics Know Your Customer (KYC) is transforming risk and compliance, creating a world where risk is understood so decisions can be made with confidence.
Harnessing our innovative technology and industry expertise, Moody’s Analytics automates accurate screening and swift onboarding of customers and third parties. We continue our support throughout the customer lifecycle by enabling the perpetual monitoring of counterparty risk across global business networks in near real-time. Our industry practice group stays up to date with the changing regulatory environment to ensure that our solutions can adapt while also keeping our clients updated so that they can proactively prepare for changes.
Moody’s Analytics KYC is helping customers automate onboarding journeys in 197 countries, across 211 jurisdictions: completing 800M+ new customer and third-party checks each day on average in 2022, including screening against our database of 17M+ risk profiles, 446M+ entities, and 34K+ sanctioned entities.