Introducing perpetual KYC. What is perpetual KYC and how is it different from periodic KYC? All of these questions are answered in the article below!
Periodic risk assessments and due diligence processes are changing the digital transformations of financial institutions (FI’s). Regulators and governments demand FI’s to start conducting ongoing due diligence to make sure they have up-to-date information on all their customers at all times. Both about the purpose and about the nature of the relationships of customers.
Periodic KYC is already adopted by many FI’s, meaning most of them now have their own processes and systems in place to do so. However, this principle is outdated and terribly inefficient. It leads to longer onboarding times and the KYC processes are typically labour-intensive, repeat themselves and are a very manual process.
More so, the total cost of AML (anti-money laundering) is skyrocketing. In the EMEA region, in April 2020, it was reported that approximately 140 billion was spent on financial crime compliance each year.
We only expect these numbers to rise significantly, as governments increasingly put pressure on FI’s to improve and enhance their KYC efforts. To decrease the costs and increase efficiency, FI’s are looking for digital solutions to transform their ops and overcome the problems of periodic KYC.
With perpetual KYC and smart automation, one can:
That’s why Perpetual KYC is now breaking through in FI’s, as Harmoney is effectively and efficiently able to offer continuous compliance and dynamic refreshing of customer data as a reply to key trigger events. This leads to an adaptive and real-time approach versus the old reactive one.
Interested in our white-paper about the basics of end-to-end customer due diligence? Click this link