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Kick-start your KYC remediation projects and refresh population

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Kick-Start your remediation and refresh projects as momentum may have slowed due to the impact of COVID-19 to ensure annual targets and compliance with regulatory requirements are met.

KYC remediation and refresh projects can be challenging in any year but as we all know, 2020 is not just “any year”. The global lockdowns that were put in place to deal with the pandemic have tested existing CLM target operating models in ways that were never foreseen or planned for. As well as managing remediation and refresh portfolios, some institutions have also experienced further strain on “bau bandwidth” for client onboarding as the market volatility experienced during COVID-19 has led them to have an increase in client on-boarding volumes not originally anticipated.  With the 4th quarter soon upon us, additional priority will be focused on meeting year end targets and finalising delivery schedule plans for the coming year, 2021. Many CLM teams are also now facing an additional hurdle in having to urgently incorporate extra remediation portfolio volumes into their production schedules due to strategic changes implemented during the pandemic to ensure regulatory compliance is met. Strategic changes over the last several months include moving client portfolios to new operating jurisdictions or consolidating client portfolios into one operating jurisdiction, resulting in the need to update KYC profiles in line with local jurisdictions.

Based on feedback shared by clients during the beginning of the lockdown period, many CLM teams were successful in implementing short term processes and procedures to assist the KYC analysts in working remotely, with the KYC analysts demonstrating how agile and adaptable they can be. Maintaining the level of productivity has been challenging for some as the lockdown phases continued to be extended. The focus is now being directed to transitioning to the “New Norm”, which may be a slow and bumpy journey due to possible renewed COVID-19 outbreaks. As CLM teams take the opportunity to review their target operating models and transition to the “New Norm”, it remains equally important to maintain the priority and urgency in completing the remediation and refresh portfolios due for completion this year as regulatory timeframes and deadlines have not changed.

CLM teams should be focused on meeting their respective deadlines and avoid incurring a knock-on-effect of having their 2020 remediation and refresh portfolios moved out to 2021. The risk of incurring a knock-on effect can lead to a never-ending spiral of remediation projects, negatively impacting the future target operating models being formed as well as the ability to remain compliant with current AML regulations, which in itself may lead to costly fines. To minimise the risks, CLM teams can consider working with a partner who has the capability and capacity to seamlessly implement a remediation project that delivers quality data and can meet the set timelines ensuring the business remains compliant with both its own business standards and global AML regulations.

Learn how Delta Capita’s CLM services can assist in picking up the momentum to meet the set delivery schedules through delivering high quality data via bespoke remediation projects led by senior practitioners and KYC operating teams with domain expertise in KYC/AML.

Please click here to contact us today, and find out more.