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Banks: how to overcome your KYC remediation struggle

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Financial regulators such as the Federal Reserve and Office of the Comptroller of the Currency are intensifying their focus on banks’ ‘know your client’ processes.

The KYC function ensures banks understand their customers and can check factors such as their identity and source of wealth. With regulators scrutinizing KYC records at an increasing number of banks, there is a growing demand for firms to ‘remediate’ these records, which means updating them to make sure they comply with the latest rules.

Timeframes are tighter than ever. US firms lacking suitable KYC compliance and due diligence practices were fined around $2.7 billion in 2021 and, with many facing remediation challenges, these sanctions are expected to increase.

With new KYC technologies and immediate verifications based on application program interfaces (API), it sometimes seems know your customer checks have become instantaneous. That may be true in some cases. But several banks are still struggling to meet regulatory requirements as there are still several elements requiring human judgement and expertise.

The deep impact of fines

Many institutions need to review vast numbers of client files manually and contact clients to fill the gaps. Technology can be a great support, but it is far from the full answer to these challenges, as there are limited end-to-end solutions available.

Several firms risk consent orders and fines if they cannot address the gaps fast enough. This could cost a lot more than just a slice of revenue. Fines are bad for business. They are a huge distraction for relationship managers who are forced to chase paperwork when they could be working on growing the business.

Fines also cause reputational damage and erode client trust. If the paperwork is not in order, banks may even have to close accounts due to noncompliance. This can be extremely damaging for the bank and the clients.

How Delta Capita can help

At Delta Capita, we help global and domestic US firms identify, quantify and manage these concerns. We specialize in KYC-related support and offer services tailored to your needs. These include refresh and remediation needed due to changes in circumstances (CIC), country uplifts, quality assurance, and QC, to name a few.

Our trained KYC staff can design a team bespoke to your needs either located onsite, hybrid, or through our managed service centers located on and offshore. Our typical offering includes:

  • experienced teams of KYC analysts with in-depth knowledge of global due diligence procedures across all entity types
  • managing client outreach and communications
  • quality and control experts, and project managers to oversee delivery
  • proprietary accelerators that source data via robots
  • internal and external data to identify information missing from KYC profiles
  • conformance with agreed governance framework and service level agreements
  • agreed KPIs and customized MI reporting throughout the production cycle
  • ongoing training to ensure compliance with your operating policy and procedures
  • an industry leading control framework (ControlNet), to manage processes and provide real-time transparency on risk and controls adherence

Delta Capita also provides the option to manage the process using our proprietary technologies; your in-house systems; or a combination. We will partner with you to agree and document the process and delivery model. We will agree production cycles and throughput to ensure project timeframes are met. We also develop and conform to an escalation framework and client outreach model.

Our offering enables you to get back to business and meet your regulatory obligations in a timely manner. We can also review your current end-to-end solution and help you to future proof your process.

Please get in touch to discuss how Delta Capita can help by emailing