Understand risk and face it with confidence

Perpetual KYC


The process of perpetual KYC (pKYC) removes the need to look at risks associated with individuals or entities in a snapshot in time.

pKYC is the practice of maintaining accurate customer and counterparty records through an automated, integrated workflow of data checks that take place in near real-time.

Adopting a pKYC method allows for more agile, near instantaneous response times to changes in customer information. This allows for risk-based decisions to be conducted with greater confidence, due to being based on more reliable, timely data points.





On Thursday, November 10, 2022, Keith Berry, General Manager KYC solutions at Moody's Analytics, was interviewed on Ian King Live, on Sky News.

During his interview, Keith discussed the latest report from Moody’s Analytics detailing the perceptions and understanding of perpetual KYC. 










THE COMPLETE PKYC SOLUTION

How can Moody's Analytics help?



PassFort Lifecycle

Orchestrate pKYC processes based on your risk policy: PassFort Lifecycle is here to automate compliance checks and flag when there are changes to a counterparty’s risk profile.


Integrate powerful data sources

Integrate powerful data sources for ownership, PEPs, sanctions, adverse media, and pKYC checks: kompany, GRID, and Orbis, combine to accurately identify risks while reducing false positives.


Who am I doing business with?

Change and update your pKYC process whenever you need: if regulations change; you move into a new jurisdiction; you’re scaling fast – we can work with you to adapt your KYC processes quickly and simply.





OUR FINDINGS

Moody's research into pKYC


We recently conducted primary research into the perceptions and understanding of perpetual KYC. Interviewing 60 risk and compliance professionals across three continents, we’re pleased to share the findings of our research.







The purpose of our research into pKYC was to understand:

  • What professionals believe the term pKYC means
  • How far on the journey of digital transformation companies are
  • What barriers to success exist for implementation of pKYC
  • Where the perceived benefits of pKYC lie


ON-DEMAND WEBINAR

Perpetual KYC research findings


Listen to Paul Nola, Partner at Context Consulting, present a summary of the key findings into our research on perpetual KYC. And then hear what our panel of experts from Moneybox, EY, Aspire FT, and Moody’s Analytics said about the future of pKYC and its potential to transform risk and compliance.





LISTEN TO OUR PODCAST

pKYC Decoded


There are some misconceptions around pKYC and more clarity is needed on what it really is and how it can be leveraged to understand risk and manage compliance.

Listen to these episodes in the KYC Decoded podcast that focus on pKYC – the difference between pKYC and periodic review; how pKYC can be managed in practice; and the tech needed to successfully operate pKYC.




Part 1 – Ongoing monitoring vs. pKYC



Are the traditional methods of periodic review things of the past? A new approach called perpetual KYC (pKYC), offers solutions to optimize the conventional process and make it more time efficient and less expensive, providing real-time risk mitigation. In the first part of our perpetual KYC series, host Alex Pillow is joined by Chor Teh, Moody’s Analytics Financial Crime Compliance Industry Practice Lead, to explore the definition, understanding, and implementation of Perpetual KYC.




Part 2 – Technology needed for pKYC



A large difference between traditional KYC and perpetual KYC is the technological advancements that enhance the process to make it more efficient. In the second part of our pKYC series, Alex Pillow speaks with Delphine Masquelier, KYC Solution Manager at Quantexa, Alex Richter, Head of Customer Lifecycle Management at PassFort, and Henry Irish, Manager of Technology Strategy at Moody’s Analytics. Their discussion takes a closer look at the technologies needed for a successful perpetual KYC program.




Part 3 – pKYC in practice



In our pKYC series we have explored the concept of pKYC and the technologies behind it, but what is it like operationally to practice this modern process and yield positive outcomes? In this final installment of the pKYC series, Jessica Cath, Head of Financial Crime Project Delivery at FINTRAIL, discusses her unique experiences and perspectives as an active practitioner in compliance to answer this question.









FURTHER READING

pKYC articles



Managing compliance challenges with perpetual KYC

How can regulated companies use perpetual KYC (pKYC) to solve their compliance challenges and manage risk throughout a customer’s lifecycle?




Perpetual KYC vs. traditional risk monitoring

KYC continues to evolve to deal with changing risks. Now firms are using pKYC - but what is it and how is it different from a traditional approach to risk management?




Negative news screening is intrinsic to risk management

Overlooked as important in risk management, negative news screening’s significance in combating financial crime is coming to the fore.






REPORT FINDINGS

pKYC infographics





Understanding pKYC



To gauge awareness and levels of understanding, we asked interviewees if they were aware of the term pKYC and, if so, to define it for us. Currently, there are patchy levels of understanding of pKYC, with only four in ten participants stating they fully understand the concept. Six in ten were either not aware of the concept at all or claim only to have a partial understanding.






pKYC challenges to success



A key objective of our study of pKYC was to understand the specific challenges compliance professionals face. We were able to consolidate feedback into eight key topics, with four primary and four secondary challenges.  






Perpetual KYC: hierarchy of benefits



We asked interviewees to describe the benefits of a perpetual approach to KYC. These were distilled into 11 themes that can be grouped along the lines of Maslow’s hierarchy of needs.




GET IN TOUCH

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We want you to understand risk across your business network, so you can face it with confidence.

Get in touch to talk to us about your KYC challenges and your journey towards perpetual KYC - we would love to hear from you.