KYC during Lockdown and beyond

The global lockdown may accelerate automation and new ways of working with lower costs

How COVID-19 can impact your anti-financial crime operations

Many AML / CTF authorities have issued guidance during the lockdown and virtually all state that the impacted entities are expected to continue to meet their financial crime obligations and especially KYC. The guidance from supranationals to local regulators encourages a risk-based approach, and points strongly to the use of technology, to both aid the social distancing measures and to detect new patterns of fraud and money laundering, with the encouragement for self-declaration of non-compliance or other constraints.

Meeting fast-changing expectations

It is important to exercise vigilance in response to the fast-changing risk environment and the evolving patterns of criminal activity, including fraud and identity theft. Automating file maintenance and choosing providers who can cross-check data with company registers and the latest news, can help mitigate risks. 

Are updates to your KYC files late because of the current pressures?

Despite the additional regulatory requirements this year, almost no regulators are loosening their expectations. Most are pointing to the risk-based approach – giving regulated institutions flexibility – and almost all are encouraging digital and automation options, both to reduce risks of fraud and identity theft, and to help clients and customers in situations where face-to-face identification is not possible. Some are also encouraging analytics of customer behavior trends to spot fraud and new types of criminal activity.

Automation and RPA can make this process largely hands-free, reducing operational cost while meeting regulatory expectations.

Click the following link to read the full insights article: KYC-during-Lockdown-and-beyond(industry-insights)



Anna Slodka-Turner
Global Head, Risk and Quant Solutions Posts
Vesna McCreery
Senior Advisor to Evalueserve Posts

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