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KYC alone is not enough to prevent AML and other fraud types

Know Your Customer is critical in all aspects of business, knowing and understanding their customer is the at heart of successful companies. It is also at the heart of great fraud prevention and AML programmes. 

Companies are realising that the traditional KYC programme and monitoring need to be improved through:

  • Improving KYC recency: it is not useful to just check the personal details when an individual joined the firm or when they became a customer. This needs to be checked regularly but the data processing overload is immense. This where fintechs are starting to provide solutions because financial institutions estimate that 24 hours of “interactive time” is needed fro every review for medium risk clients with elapsed time becoming impossible
  • Knowing not just the customer but also each transaction is going to be an inevitable facet of future regulation. Sadly there are significant issues here between the existing MT and the new MX messages with most of the world is still using the MT standard. In his excellent article in Bob's Guide 14 February, 2017- Antonio DeLorenzo - VP Partnerships, Identitii, wrote the solition is KYT is the solution, "The automated enrichment of messages with accurate and relevant information coming directly from original sources of the data, rather than manually, is the ideal scenario." 

CTMfile take: We now see clearly: how to vital it is track your customer regularly and fully understand their transactions, AND how costly it can be if we don’t, but can this level of understanding ever happen? How can corporates do this and avoid the huge losses involved?

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This item appears in the following sections:
Anti-Money Laundering
ID Systems & Services in Fraud Prevention
Minimizing Payment Fraud

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