Customer due diligence
Customer due diligence is at the heart of preventing financial crime. But getting it right is complex.
Know Your Customer (KYC) / Customer Due Diligence (CDD) is a core financial crime requirement. Despite huge levels of investment, poor execution remains the reality for many organizations. It most often comes down to its multi-faceted and cross-functional nature – the complexity of execution makes it difficult for firms to identify where their problems lie, and what the solutions might be.
Typical operational issues can include:
- Weak lineage between policy, procedures, underlying process and technology
- Highly manual processes
- Low quality case outcomes
- Ineffective use of technology, data and analytics
Resulting in low quality financial crime decision-making; costly remediation and regulatory fines; sub-optimal through-put; detrimental impact to customer experience, reputational damage and wider social harm.
KYC/CDD Navigator Solution
The KYC/CDD navigator provides a holistic approach to highlighting the challenges your CDD function faces and helps to identify opportunities for solving them in a simple and organized way.
- Captures insight and experience garnered through hundreds of CDD client engagements;
- Underpins our end-to-end CDD enhancement methodology;
- Applicable to the full spectrum of Financial Services operating models;
- We use the KYC/CDD navigator as an overarching taxonomy against which we assess the performance of your CDD capability through maturity assessments, tailored diagnostics and the development of roadmaps.
KPMG has leveraged its experience of working with clients around the globe to bring structure and clarity to this challenge. The KYC/CDD navigator is a simple method of approaching this challenge, and brings focus to the full spectrum of maturity opportunities. It embraces the key components of effective KYC/CDD, whilst considering their sequencing and inter-connectivity. Behind all of this sits defined benchmark standards and industry-wide knowledge of CDD maturity.
The KYC/CDD navigator can rapidly bring clarity to the actions required to transform your KYC/CDD operations. Identified benefits vary by client, but operational efficiencies of 30-40% are not uncommon. These measures can result in higher quality financial crime decision making and initiate an enhanced customer experience, CDD operational excellence, enablement of commercial growth and success.
- Policy and risk management. A linear translation of policy into business rules and data requirements. Accurate assignment of risk to your in-scope customers.
- Process and services. Increased efficiencies across the activities required to take your clients through the KYC/CDD lifecycle, such as onboarding and names screening.
- People and organization. Re-calibration of people-related activity against your organizational framework. Fine tuning of performance management, leadership/culture and learning to ensure your people are equipped with the skills they require and work in an environment which is optimised for success.
- Data, technology and analytics. Optimization of internal and third party data to enhance your risk decisioning.
Let's do this.