The FinTech landscape is increasingly gravitating towards perpetual know your customer (KYC) protocols. As part of this evolution, the operational pillars are rapidly transforming. Graham Bailey, COO of Quantifind, and Brian Kindle, VP of product development at ACFCS, shed light on this shifting terrain in a new podcast on the foundational elements of perpetual KYC.
In the ceaseless decision-making arena of financial crime compliance, professionals are frequently asked to make judgements about customers, transactions, and behaviours. The heart of this process is a risk-based approach which has to be agile, responsive and meticulously accurate.
The accelerating influx of negative news, sanctions, and politically exposed person (PEP) risks are fuelling an increasing need for swift and precise decision-making. Faced with such an escalating rate of change, many organisations are transitioning from static or sporadic risk assessments to a more dynamic and useful strategy. Enter the domain of perpetual KYC.
Although implementing perpetual KYC is a tall order, it has become a strategic imperative for financial institutions. The daily torrent of decision-making that financial crime professionals face as part of the risk-based approach necessitates constant innovation and efficiency. This has led to the rise of AI-driven name science and global open source intelligence, which can augment risk coverage across all customer bases.
Strategic alliances between the public and private sectors are also pivotal in defining and calibrating risk. These partnerships create a shared pool of expertise and resources, enabling a risk-based approach that scales in line with the organisation’s growth. This strategy also helps to extend the scope and depth of risk coverage for every customer.
However, as financial institutions strive to navigate this flood of decisioning, the question arises – what ingredients are needed for a successful transition to perpetual KYC? The answer lies in leveraging the power of AI, harnessing open source intelligence, and exploiting the advantages of public-private partnerships. These factors are poised to become the cornerstone of this shifting landscape, heralding a new era in financial crime compliance and decision-making.
Listen to the podcast here.
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