Know your Customer (KYC) issues have received much attention in recent years fuelled by an increasingly stringent regulatory environment and the need for companies to protect against operational, financial and reputational risks.
Banks and insurance companies in particular have felt compelled to invest in KYC programs to demonstrate compliance with the panoply of legislation for fear that any exposure might
result in punitive fines.
Although ever tighter regulation is expected and risk management remains a priority, the continued focus on cost containment is causing companies to re-assess the value of their current KYC initiatives. In some noteworthy cases responsibility for KYC compliance is being devolved from large centralized compliance teams to the operational units.
The KYC Health Check is designed to examine the key business issues relating to KYC;
- Customer onboarding and approval policies
- Customer identification issues
- Ongoing monitoring and control
- Managing the risk
- Reporting and Disclosure
- Financial model for KYC program costs
Based on a structured framework the simplicity of approach allows for findings and recommendations to be delivered in very limited time. In today's environment the KYC Health Check represents an ideal mechanism to re-assess the status, effectiveness and, perhaps most importantly costs, of any KYC program.