With the significant increase in the need for continuous KYC (CKYC), we look at its benefits, the repercussions of not having the right monitoring, and how we can help companies in this journey.
There is a significant increase in the need for continuous KYC monitoring of clients now more than ever. Regulated businesses are finding the need to adapt to the new age risk that is attached to digital payments and digital currencies. Having ongoing monitoring of customer profiles can help businesses ascertain risk and take appropriate action towards it.
The conservative approach focuses on assessing the customer's risk position at a given point in time (i.e., at the time of onboarding), whereas continuous KYC monitoring helps to understand and attend to the changing risk profile of the customer throughout the relationship or lifecycle.
With appropriate analytics and relevant insight, CKYC can identify and stop complex money laundering or any kind of suspicious pattern and transaction in real-time, helping financial institutions have anti-money laundering (AML) transaction monitoring.
Continuous KYC allows businesses to discover risks and adopt necessary measures. There are, however, consequences when a business fails to oblige with CKYC. Below are some examples:
Post-COVID-19 pandemic, things have not been the same. There has been a dramatic shift in economic and financial regulatory scenarios across the globe.
On one hand, there is financial instability that contributes to the rise in unemployment, which has in turn led bad actors to commit financial fraud through charity foundations and other business activities. Market volatility also caused the prices of cryptocurrencies and other digital currencies to practically double, driving individuals to park illegal funds in virtual wallets.
On the other hand, businesses are pushed into using digital payments, which results in an increase in digital transactions. With the recent spike in demand for contactless home deliveries and electronic payments, digital e-commerce businesses have grown phenomenally.
A continuous monitoring approach allows businesses to:
Our extensive experience in digital transformation in the finance industry allows us to extend support to more businesses. Our tech partners, who are market leaders in client lifecycle management (CLM) and CKYC/AML systems, have enabled Synpulse to become a one-stop shop for businesses to fulfil their regulatory requirements on AML/KYC topics and integrate the solutions to business systems in a hassle-free way.
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