Compliance teams across the globe are facing the daunting challenge of navigating a complex macro environment. Ever-changing regulations such as Anti-Money Laundering (AML), Anti-Bribery and Corruption (ABAC) and sanctions are hard to keep up with. On top of this, compliance teams are being pushed to be more efficient when carrying out customer or vendor due diligence, but resources are already stretched.
However, help is at hand – automation, coupled with structured corporate data, can empower you to make faster decisions.
The benefits of streamlining the ‘Know Your Customer’ (KYC) or ‘Know Your Vendor’ (KYV) due diligence are clear in terms of reducing cost and allowing compliance teams to focus effort where enhanced reviews are required.
Where can automation and data help in accelerating due diligence?
Providing a friction-free onboarding experience – meet your compliance requirements and improve customer experience by making onboarding decisions in minutes, not days. Technology can be used to run checks in as little as 60 seconds.
Powerful reference data – screen against Dun & Bradstreet’s databases of over 460 million company records, more than 300 million Ultimate Beneficial Owners, 1.5 million PEPs, 700+ blacklists, sanction lists and more in one place, with no need to locate and reference other data sources.
Reduction in false positive effort – automation can be used to intelligently accept or reject screening hits when coupled with data tied to a unique identifier. You could achieve up to a 75% reduction in false positive effort.
Monitoring – traditional periodic reviews are typically quire cumbersome, don’t offer a ‘real-time’ view of an entity and its current level of risk as changes may be missed between reviews, and often an entity will be reviewed despite no change having taken place at all. Moving to ‘perpetual KYC’ with the ongoing, automatic monitoring of clients or third parties can help you react faster to changes and avoid replicating work. Monitoring can be an event-driven process, where all aspects of data that drive your risk rating (including beneficial ownership, sanction list hits and firmographics) are continuously updated with new information. Changes are assessed immediately as they occur, and entities are intelligently re-scored if required.
Audit trails – technology can be used to store an audit trail of any due diligence actions carried out on your records, including stamping with date, time and who carried out the action. This can speed up any later reviews and audits.
What can we automate?
Below is an example showing how the due diligence process can be automated. Compliance teams input the information they have on a client or vendor into an automated solution. The verification, matching, screening and scoring all take place automatically in around 60 seconds. Entities perceived as ‘low risk’ are good to go and onboard. Those perceived as ‘high risk’ or ‘medium risk’ then go to teams for analysis and enhanced due diligence if required.
There we have it – automation and data can work together to enable your compliance team to spend less time searching and reaching out to clients/vendors, and more time analysing higher risk entities to reduce your exposture to money laundering and financial crime – ultimately protecting your revenues.
To discover how Dun & Bradstreet can support you in accelerating your compliance processes with technology and our Data Cloud, click the links below to find out more about our cloud-based solution and request your free, personlised demo.