KYC Remediation: Mistakes and best practices

Regulatory scrutiny obliges banks to re-validate existing clients. Done right, it leads to better customer data and less fraud—but done wrong, it can be the ultimate money pit.

– Regulators across multiple jurisdictions have turned their attention to the Know Your Customer (KYC) and Customer Due Diligence (CDD) files of existing bank clients

– Once in the crosshairs of a regulator, a bank needs to act quickly and decisively—often in the face of an imminent deadline

– Common mistakes banks make when initiating a remediation project: putting the burden on clients, recruiting expensive, untrained staff, trying to build a file with patchwork data, and relying on manual processes

– Best practices for a successful large-scale remediation process include rewarding clients, improving data quality, and prioritizing cost and time.

While most common KYC remediation mistakes involve choosing expediency over quality and putting too much attention on cosmetic changes instead of value-added strategic investments, Fourthline‘s recommendations for success involve maintaining a focus on the stakeholders and metrics that matter the most.

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Article Topics

biometrics  |  digital identity  |  financial services  |  Fourthline  |  fraud prevention  |  KYC  |  onboarding  |  white paper