KYC as a managed service | KPMG | UK

'Know Your Customer' as a managed service

KYC as a managed service

How KPMG’s Managed Services approach to client due diligence can help deliver value in an ever changing regulatory landscape.

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Head of Managed Services Delivery

KPMG in the UK

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"Know Your Customer” as a managed service - people look at document through magnifying glass

In the current marketplace failing to adhere to Anti-Money Laundering (AML) regulatory requirements or falling short of the expected standards in Know Your Customer (KYC) can result in large fines and reputational damage for banks and other financial institutions (FI). Potential challenges for our clients may include:

  • Tight deadlines set by regulators for the remediation of certain client populations 
  • Insufficient bandwidth to support BAU operations in terms of periodic/event triggered reviews or on-boarding of new clients
  • Setting up high quality operations to process technical remediations or periodic reviews including complex entities, high risk clients or PEPS.

KPMG’s Managed Services has helped to deliver high quality KYC operations for multiple clients. While each engagement will have a specific purpose, from a Managed Services perspective we always aim to go beyond this and provide real value to our clients over the long term.

How do we approach KYC?

We have a large number of knowledgeable and experienced associates who have worked with us on KYC operations in the past. Any new joiners are trained to a high standard on clients' policies and procedures and go through various stages of accreditation. We also deploy continous learning whereby our associates' technical knowledge - as it relates to policies and procedures - is tested on a regular basis and any identified knowledge gaps are promptly addressed.

Our SMEs adopt a proactive approach to achieving and maintaining high quality standards which include providing floor support and running and facilitating case clinics with the client to agree on the way forward on ad-hoc scenarios or more complex cases.

This communication between the client and operational SMEs is key as discussions will take away policy misalignment or misinterpretation up front.

We look to add value by layering in SMEs, tools and technology, and operational excellence to provide real long-lasting value to our clients. We also continously seek better ways of working, whether from tools, automation or by identifying efficiencies that ensure we drive optimal performance.

Our Management Information (MI) Team produce bespoke MI and Insight for each engagement; driving individual performance, identifying operational efficiencies and measuring our success. They also liaise with clients to track our key performance indicators and offer evidence-based insight that allows for continous improvement.

Our Managed Service team's level of knowledge and understanding is demonstrated by our ability to continuously achieve and hit quality targets set by our clients. We pride ourselves on being able to complete more complex or high risk case reviews freeing up our clients' resources.

Earlier this year we secured the contract renewal for year three of a Know Your Customer (KYC) engagement and are discussing year four, which is testimony to the quality of our operations to date.

More specifically we:

  • Maintained a full scale on and offshore operation to meet client demands;
  • Successfully demonstrated our ability to exceed the client’s own internal quality standards, achieving a consistent 96% pass rate at quality assurance (QA) throughout the engagement and delivered ahead of our case completion targets. 
  • More recently our client has assigned us to perform QA checks on their internal operations which is a testament to our high quality delivery, trust in our teams' technical competence, and their confidence in our results.

On another of our engagements involving a review of High Net Worth individuals, our client's internal audit team gave our case outcomes a 100% pass rate.

If you would like to learn more about our KYC capabilities, please contact our enquiries mailbox and we will be happy to share more information with you.

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