Regulatory fines are one of the biggest concerns for compliance teams.
It’s crucial to focus on the tools and processes you have in place. While these headlines may seem like they’re from the past year, they are just two to three weeks old. This is what’s happening daily in the compliance space today.
Massive fines when actual money laundering and criminal activity is happening, and smaller fines but still significant, simply because a business is deemed to have an inadequate or outdated AML program, that their tools haven’t kept up with the demands of the business, and that their financial crimes team is unable to support the business as it has grown.
This is very important. You need to make sure that you’ve invested properly in your AML program. If you’re worried about the status of your compliance effectiveness, and you’re overwhelmed by manual processes and the bureaucratic overload that entails, and you need to get some breathing room and you want a solution that just works, you’ve come to the right place.
How do you begin to reduce your fines?
You’ve got to look at these five different fundamentals. You’ve got to get the fundamentals right. That means your tools and your processes, figuring out your risk tolerance levels. Once you have that, you need a customer identification program. You need to identify them properly, both businesses and individuals. You need to do due diligence on your customers. Understanding who your customers are and what they intend to do in the business relationship that you will entertain with them.
You also need to monitor your customers because customers change over time, and their risk profile may change. Knowing if your customer is engaging in higher risk business elsewhere, and be aware of that so that you can manage your risk appropriately.
And finally, you need comprehensive and effective audit and reporting tools to support your business when dealing with the regulator, your board, your auditors, your shareholders, and so on.
If you’re looking to manage your inherent risk, the clients, the products, the countries, the channels, the other factors that generate the risk in your business, and you’re looking to boost your control effectiveness and have better governance policies, procedures, risk management, and so forth, you are not alone.
KYC3 is working with many clients who are just like you and want to achieve the same thing, and we are laser-focused on delivering that to companies like yours. Let me show you a bit of what we do.
How do we reduce your regulatory fines?
We start out with a simple dashboard that allows you to see everything that’s going on.
What is the dossier completeness? What do you have in terms of things to review? What is the risk profile of your business, and what is the profile of your clients?
You also have detailed access to every single bit of data that you collect on your clients, so you can look at every dossier, and every company, and you can see all the documents, and the structure chart, which will be automatically maintained and updated in real-time.
The dashboard allows you to drill through to any other individual and see their file or any entity and you can also look at the various documents that you have, and use what we call Tinder for compliance.
There is an option to accept, escalate, or reject documents, potential matches, and risk events.
All of this is handled in a very easy-to-use interface, and you have a detailed audit log of every decision that’s made. The KYC3 dashboard offers full capability to deliver reports, and you can get all the data you need in an easy-to-use format that can be sliced and diced and used elsewhere.
You have a tagging capability that allows you to tag all of the entities in your system so that you can see them by region, by fund, by investor type, or whatever your heart desires.
And finally, you have a complete research function, which allows you to look into the data of all the risk entities and see exactly what is there.
So, before even creating a dossier for a prospect, you can do the research to understand who they are and if they represent potential risk.If you’re interested in learning more and would like to have a conversation about how we might be able to help you, please reach out and book a time.Click here
