Perpetual KYC is the next big thing for compliance but what exactly is it? And why should compliance teams bother to adopt it? Here are 5 things you need to know:
1. Perpetual KYC means changing how you do KYC
Perpetual KYC brings a totally new approach to how you do KYC. It means:
- Being proactive rather than reactive
- Continuously monitoring customers
- Switching from periodic KYC reviews to those that are triggered by anomalous patterns of customer behaviour
2. Perpetual KYC reduces risk
Perpetual KYC eliminates the need for a periodic client file review and refresh. In doing so, it mitigates the risk of criminal activity remaining under the radar for months or even years. By continuously monitoring transactions, perpetual KYC provides peace of mind by raising an alert if an activity does not fall in line with what is expected.
3. Perpetual KYC can be applied to all sectors
Perpetual KYC adds value to all compliance teams, regardless of the sector. It is ideal for managing third party risk.
4. Perpetual KYC needs a good data supply
Data is the new oil. It makes sense that the more data we have on customers, the better the risk identification. To work as it’s intended, perpetual KYC needs lots of data from a wide range of sources.
5. Perpetual KYC is a gamechanger
I liken perpetual KYC to the introduction of the iPad. Before its arrival, we simply used a PC or laptop. But the tablet created a whole new category; a whole new way of doing things.
Once you adopt perpetual KYC, you will wonder how you managed risk and compliance without it. Perpetual KYC reduces risk but it also optimises use the of compliance teams and resources.
Switch to perpetual KYC now
Adopting perpetual KYC is easy with Napier’s Client Activity Review.
Our innovative software layers on top of existing systems to monitor transactional activity against the customer’s pre-established profile. The Client Activity Review aggregates data from all third-party KYC streams and transaction monitoring systems to ensure a comprehensive 360° view of the customer and their behaviour.
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