Financial Crime World

Here is the rewritten article in Markdown format:

Financial Institutions Must Evolve KYC Practices to Combat Financial Crime

A paradigm shift is underway in the financial industry as institutions strive to stay ahead of increasingly sophisticated criminal tactics. Key to this effort is a more dynamic and effective approach to customer risk profiling and monitoring.

The Need for Perpetual KYC

The traditional method of conducting Know Your Customer (KYC) checks at onboarding, followed by periodic updates, is no longer sufficient. Financial institutions must adopt a perpetual KYC approach that continuously monitors customer activity and behavior to identify potential risks.

According to Ian Nelson, Partner and Head of Financial Services at KPMG, “While budgets are tight, many companies continue to invest in strengthening their financial crime capabilities, recognizing the clear return on investment.”

Benefits of Perpetual KYC

The benefits of perpetual KYC are numerous. It enables institutions to:

  • Identify and address potential risks earlier, reducing the likelihood of financial losses
  • Improve customer relationships by providing a more personalized and relevant experience
  • Enhance compliance with regulatory requirements and reduce the risk of fines and reputational damage

Technology and Strategic Approach Required

To achieve this, financial institutions must invest in technology that can process vast amounts of data quickly and accurately. KPMG’s global perpetual KYC solution, developed in partnership with Quantexa, is designed to help institutions transition to enhanced KYC.

In addition to technology, financial institutions must also develop a strategic approach to customer monitoring. This includes:

  • Identifying high-risk customers
  • Detecting unusual activity
  • Analyzing customer behavior to identify potential risks

According to Haytham Jaber, Director of Financial Crime at KPMG, “While there is no one-size-fits-all solution, we believe that perpetual KYC is the future of financial crime prevention.”

How KPMG Can Help

To learn more about how KPMG can help your institution evolve its KYC practices and stay ahead of financial crime, contact us today.

KPMG’s Financial Crime Transformation Team

Our team is at the forefront of expertise and tools to help you achieve success. We offer a range of services, including:

  • Developing strategic roadmaps for financial crime transformation
  • Implementing global perpetual KYC solutions
  • Designing technology strategies and operating models that support innovative customer monitoring
  • Providing global better practice insights and intelligence

Contact us today to learn more about how KPMG can help your institution evolve its KYC practices and stay ahead of financial crime.