Moving to a perpetual KYC model: The benefits and the challenges

Neil Isherwood
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Neil Isherwood: Compliance SME & Sales Strategy Leader, Dun & Bradstreet, UK

Journal of Financial Compliance, 2022, vol. 5, issue 3, 228-236

Abstract: Financial services firms have been looking for many years to improve efficiency in the Anti Money Laundering/Know Your Customer (AML/KYC) onboarding process, looking towards a data led approach and automation to reduce costs. In many firms this has been a slow process with many other programmes taking priority in terms of development resource. However, the COVID-19 pandemic has highlighted that processes which involve large work forces, offshore resources and manual labour, are particularly vulnerable to disruption, resulting in institutions being unable to accept new customers due to lack of resources. This has placed a renewed focus on automation and in turn also turned attention to perpetual KYC as a method for maintaining client files, without the need for a full manual periodic review. This paper looks at the benefits of this type of approach and the challenges that organisations face to adopt it.

Keywords: know your customer; KYC; Perpetual KYC; anti money laundering; AML; due diligence (search for similar items in EconPapers)
JEL-codes: E5 G2 K2 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:aza:jfc000:y:2022:v:5:i:3:p:228-236

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