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. With increasing costs and operational and regulatory pressures, many financial institutions are opting to use a different business model to manage their AML processes, by outsourcing their CDD operations to KPMG.

There are three key areas where KPMG Managed Services can help clients tackle challenges in this area including:

  • Remediation: Achieving CDD remediation to tight deadlines set by regulators for the remediation of certain client populations 
  • BAU and backlogs: Insufficient bandwidth to support BAU operations in terms of periodic/event triggered reviews or on-boarding of new customers
  • Quality issues: Setting up high quality operations to process technical remediations or periodic reviews including complex entities, high risk clients or PEPs with high right-first-time quality outcomes to limit rework

KPMG Managed Services uses technology, subject matter experts and operational excellence to deliver high quality KYC operations for multiple banks and corporate clients from its 6 global delivery centres. While each business has specific requirements, we use our operational expertise gained from numerous KYC operations to ensure a controlled and rapid mobilisation of the project and provide added value by identifying continuous improvement and customer data insights throughout the lifetime of the engagement. Our end to end service reduces the average case handling time and improves the first-time resolution of cases, allowing our client to focus back on the core parts of their business whilst keeping them in the driving seat.

How do we approach KYC?

We use our operational expertise to put in place an integrated solution which brings the right people, tools and technology. Through this approach we can run successful KYC operations, at scale, that deliver right-first-time quality scores of >95% on average in retail and wholesale.

Key to our operational approach is:

Quality at the core

We have a pool of over 2,500 experienced KYC Analysts across our eight global delivery centres, which we run as a mirror image of our operations in the UK. We tailor our quality framework to each client and ensure regular technical product knowledge tests to identify knowledge gaps and drive learning across the operation. We embed subject matter experts into our operations from the beginning and they adopt a proactive approach to achieving and maintaining high quality standards which include providing floor support and running and facilitating case clinics with clients to agree the best approach. This communication between us, you and operational SMEs is key to removing policy misalignment or misinterpretation up front.

Technology to drive automation in the process

By working with KPMG proprietary technology and our Alliance partners, we’re able to provide a range of CDD technology options and accelerators to drive automation in our operations and improve the customer experience. Some of our key accelerators include:

  • KPMG Third Party Intelligence Diligence (K-3PID) is a technology solution that leverages enhanced data analytics to drive efficiency, reducing manual data gathering and decision making
  • Policy Lineage tool which removes the risk of policy misinterpretation and human error
  • A customisable CDD workflow, interactive customer portal and database configured to specific processes and procedures which ensures clear audit trails, reduces the cost of governance and removes unnecessary outreach to clients

Data and Reporting

Our best in class Management Information (MI) team produce bespoke, granular MI and Insight for our KYC operations; driving individual performance, identifying operational efficiencies and measuring success. We work closely with you to track key performance indicators and offer evidence-based insight that allows for continuous improvement and manage capacity to ensure we can ramp up and down to meet demand.

To discuss how we can support you with an outsourced KYC delivery model, please get in touch with the team and we will be happy to share more information with you.