Learn more on why Perpetual KYC is such a game changer.
With periodic KYC, every 1 up to 5 years, customer data is updated or in some cases only when a request has been made to update client data, typically triggered by an audit of the regulator, attached to high fines and putting the reputation of the institution at stake and linked to extremely high operational KYC costs and inefficiencies. Periodic KYC is NOT cost-effective and with ever-expanding regulation, it does not scale well either.
Perpetual KYC is dynamic of nature and accommodates and enables FI’s to continuously monitor for events that alerts FI’s about the need to review and update their customer’s dossier and information. It is built on the discovery of data for due diligence which is triggered by:
- A new event in the external information database or change of data that is related to a risk assessment or when new information pops-up.
- An existing customer who wants to update their own data vs what they provided before.
- An internal monitoring update.
- Recording of something suspicious in terms of transactions, credit risk or payment screening.
When the update occurs or is triggered, a request will be sent out to the clients. This process is very time-consuming and requires a lot of patience from both the client and organization. Typically involving a lot of costs, stress, manual labor and stamps in general.
With Harmoney, we offer the most complete perpetual KYC platform for financial institutions that’s highly customizable and completely tailored to your unique processes. Where we make sure all those processes are continuously up to date with the latest local and national regulations. Adjacent from connecting to all your in-house and 3th party software to make sure KYC data is available and up to date across all those systems.
Interested in our white-paper about the basics of end-to-end customer due diligence? Click this link