How to integrate perpetual KYC into an effective compliance roadmap


Encompass Corporation and Capgemini are teaming up on a pivotal report centred on perpetual KYC (pKYC) integration.

The report underpins an ambitious goal of incorporating pKYC into an effective compliance roadmap.

In the world of banking and finance, Encompass Corporation has always been at the forefront of RegTech solutions. By streamlining and automating Know Your Customer (KYC) processes, they aim to deliver faster, more comprehensive results for financial institutions. On the other hand, Capgemini brings in its deep-rooted expertise in technology consulting to this collaboration, thereby complementing Encompass’s prowess in FinTech.

The newly released report aims to underline the crucial regulatory requirements that financial institutions must account for, ensuring the best possible KYC outcomes. It focuses on the benefits of pKYC, which allows organisations to immediately detect and respond to suspicious activities, thus reducing the risk window significantly.

KYC procedures are considered vital to any anti-money laundering (AML) programme. Many banks still employ manual processes for KYC, leading to potential risks and operational inefficiencies. A shift towards pKYC, with its automated, real-time updates, will not only enhance customer records but also decrease the likelihood of fraudulent activities.

In the context of AML compliance, pKYC holds immense significance. With regulatory bodies such as the Financial Crimes Enforcement Network (FinCEN) officially acknowledging customer due diligence (CDD) as the 5th pillar of AML compliance, the report underscores the urgency of transitioning to pKYC.

Automation is a key driver of this change. Dynamic KYC process automation, as proposed by Encompass, can revolutionise KYC processes in banks, and boost their efficiency. By keeping customer records up-to-date, pKYC enables banks to maintain continuous compliance and mitigate risks more effectively.

“Financial institutions should view the integration of pKYC as an opportunity to rejuvenate their processes and improve customer risk identification and mitigation,” Encompass’s global head of industry & regulatory affairs, Dr Henry Balani, said.

Read the full report here.

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