Oct 7, 2012

KYC Maturity Model published in ACAMS Today


The KYCnet KYC Maturity Model was recently published in ACAMS Today, the journal
of the Association of Anti-Money Laundering Specialist.

The first page is below - contact KYCnet to request a longer copy.


The Need for Improvement

The need for improvement


With changing regulation, increasing market competition and consolidation — especially within the
context of the current financial crises, banks and other financial institutions need to better manage
risk, reduce cost and increase revenues.

Know Your Customer (KYC) is a niche business process and is often costly and inefficient. The real direct and indirect people costs are high and continue to increase. KYC is also a non-core competency  requiring the continuous retraining  of  a wide range of senior staff and reinvestments in non-revenue-generating policy, procedure and process definition. As an often inefficient and infrequently performed  non-core activity, quality and morale can suffer, leading to audit issues such as incomplete or out-of-date files and AML customer  events going unrecorded or non-investigated.  Furthermore,  KYC is also a great source of client dissatisfaction with regular annoyance caused by inexperienced or distracted account managers  failing to complete client on-boarding and periodic reviews in a timely or efficient manner, with particular client irritation caused by confusion and numerous  follow-up requests  for clarifications, alternative or additional documents etc.
KYC process improvement needs to directly address these cost, efficiency, core, quality and satisfaction issues by so doing, improve risk management, reduce costs and support front office staff in their efforts to concentrate more on revenue generating activity.