During the last years money-laundering and sanction violations are punished with high penalties and concern both, customers and banks. In addition to high penalties, the European Union tightens its regulatory requirements in order to fight against money-laundering and terrorist funding. Instant pressure to act implies huge challenges for banks, since organisations, processes and systems are frequently not designed for this. Beside the regulatory topics many banks have backlogs with existing customers and with new bank customers which leads to significant losses in revenues and market share.
To reduce the backlog KYC organisation, processes and sufficient staff are often not in place yet – it takes around three years to establish a KYC organisation but the need is right now.
This is our starting point helping out immediately with a task force team for remediation and backlog reduction. We use our unique tools and implement short and long term initiatives for more efficiency in KYC production.
Phase I:“ Kick-start with a task force team“
In order to get immediately started, we will set up a task force team with the combination of expertise either onsite in the banks or in our KYC factory locations where we have enough capacity also for large teams.
Set-up time from our side is not longer than one week until our team is ready to start with the first cases. For a successful execution with transparent production times in each step we will implement our proven tracking and workflow system.
KYC CDD Workflow
During the whole KYC CDD process the workflow is organised, progress is tracked and roles are defined. Through degrees of automatization research can be expedited up to 50% in total. Effectiveness, security and efficiency are ensured.
Our customer will receive either a daily or weekly management reporting hence there is a high traceability and we can ensure reaching tight deadlines.
After capturing the exact production time for a number of cases we will also suggest possible improvements that can be implemented during an ongoing remediation project and reduce production times significantly by 30 to 50 %.
Phase II: Sustainable KYC Process improvement
For a sustainable KYC solution it is crucial to invest in process improvements with a focus on automation. Tactical solutions such as huge remediation projects should only be short term initiative to reduce existing backlogs. Process improvements should be done end-2-end with a special focus on increasing the first time right quality and consequently reducing the loops. The most time consuming part is often the client outreach, which is necessary to gather the missing information. The essential part to increase the first time right quality and reduce the client outreach is the research step. The more information and documentation could be researched from available sources the less client outreach is required.
The research part is often very fragmented due to many sources which have to be considered. Multiple log-ins are time consuming for the analysts and lead to a high frustration. Furthermore, data provider charge high license costs to provide the requested data. Another challenge is that almost every country has their own data sources which often are very difficult to access. Especially in this part of the KYC production has a high potential for automation and intelligent sourcing.
passcon offers an automated solution to source the relevant data from approved sources in much less time compared to a manual research. A finalised research package with an appropriate checklist of still missing information is delivered. This automated solution could be customized especially with regards to the customers list of approved sources. We offer to conduct the automated research overnight as well as during business hours and deliver this part of the KYC production to our customers. Based on our experience we are able reduce the end-2-end production times and the number of client outreaches by 30 to 50 %, which allows our customers either to realize cost saving or utilise the efficiency gain to increase the throughput. The purchased research package can be perfectly integrated in an ongoing remediation project. Only a short lead time is required to use this service, which could be done during an existing remediation project.
We are happy to present you our entire solution and show how you would benefit from this. Please contact us for further details.