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Think KYSC - KYC alone is not enough

KYC on-boarding is a pain as the recent encompass survey showed, see, with the biggest challenges being:

Source & Copyright©2019 - Encompass

 

But understanding your customers and introducing anti-money laundering procedures to minimise your exposures and losses, is only half the story. You also need to carry out Know Your Vendor programmes as well as KYC programmes. encompass highlight this and stress how vital it is to do KYC and KYV programmes.

Know Your Vendor programmes

Many suppliers offer KYC programmes. A good example is the Know Your Vendor programmes from PwC. They believe that it starts with knowing who is in your extended vendor network:

Source & Copyright©2019 - PwC

PwC has developed a surveillance and monitoring solution, Strategic Risk Data Lake, which uses proprietary algorithms and advanced analytics:

Source & Copyright©2019 - PwC 

This:

  • Identifies vendors
  • Performs enhanced due diligence on vendor networks
  • Quantifies the risk surrounding vendors
  • Reveals areas of risk to consider mitigation measures

PwC claims that a more analytics-focused approach to managing vendor-associated supply chain risk stand to:

  • Enhance mitigation of potentially costly reputational and regulatory risk
  • Reduce exposure to fraud, corporate social responsibility issues, and adverse media
  • Gain data-driven operational insights
  • Reduce intellectual property exposure
  • Realize potential cost savings through persistent, full-population monitoring of third-party relationships.

CTMfile take: The key here is to have both KYC and KYV programmes running simultaneously. Having them from the same supplier can help.


This item appears in the following sections:
Anti-Money Laundering Fraud Prevention
Terrorist Financing
Know Your Customer

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