Financial Crime World

Title: Local Malaysian Bank Modernizes KYC Processes with Capco’s Expert Assistance

Background

In an era of strict industry compliance standards, a local bank in Malaysia aimed to keep pace with global banking norms while optimizing costs. However, the transition towards automating and reducing manual processes and back-office support presented a significant challenge.

Partnership with Capco Malaysia

Enter Capco, an international consulting firm, who played a crucial role in streamlining the bank’s end-to-end Know Your Customer (KYC) processes with the help of their KYC expert consultants in Capco Malaysia.

Initial Assessment

Capco Malaysia began the project by conducting an as-is analysis, documenting existing processes, and identifying potential gaps. Their involvement soon expanded to support various areas within the risk & compliance unit:

  1. Transaction Monitoring Unit (TMU)
  2. Customer Due Diligence (CDD)
  3. Anti-Money Laundering (AML) checks

Key Deliverables

Capco Malaysia provided a team of highly-skilled risk & compliance experts, project leads, consultants, VB & light automation specialists to the local bank. They delivered numerous solutions to optimize KYC processes.

Automated Solutions

  1. Developed real-time regulatory compliance macros via VBA
  2. Introduced a new semi-automated macro template for KYC outreach and ODD/CDD for retail non-individuals, corporate and retail individuals

Established Standard Operating Procedures

  1. Created standard operating procedures (SOPs) for KYC outreach
  2. Enhanced TMU quality assurance and reporting SOPs
  3. Built a screening tool, TMU dashboard, and TMU quality assurance framework

Training and Expertise

  1. Conducted KYC/TMU training sessions
  2. Introduced expert TMU personnel to identify gaps and propose improvement solutions
  3. Introduced variable investigation methodology, tailored to the skills of each analyst and case complexity
  4. Enhanced investigator performance reporting

Other Key Deliverables:

  1. Managed data, MIS, and reporting for the KYC remediation team
  2. Designed and prepared KYC outreach tracking, productivity, and weekly and monthly AML transaction steering committee reporting
  3. Performed quality checks for KYC outreach, both inbound and outbound
  4. Provided daily expertise, insights, and support for KYC compliance

Collaboration Success

The partnership between Capco Malaysia and the local bank has proven successful. The institution is continually upskilling its team in risk & compliance, automation, KYC, and AML compliance to meet industry standards. With Capco’s continued support, the bank is advancing towards further cost savings, efficiencies, and adopting a ‘change culture’ mindset and management style.