KPMG launches KYC due diligence platform
The UK wing of KPMG has launched a new customer due diligence technology platform to help businesses cope with regulatory pressure and skyrocketing compliance costs.
The Know Your Customer (KYC) guidelines in financial services require that professionals make every effort to verify the identity, suitability, and risks of maintaining a business relationship. However, the number of contact points required to contact a customer makes KYC an extremely expensive process. The long process of compliance with the guidelines means that banks are investing huge amounts of capital in their KYC efforts. According to Thomson Reuters, some large financial institutions spend up to $ 500 million per year on KYC and due diligence, while 10% of the world’s largest financial institutions spend at least $ 100 million per year.
However, KPMG UK hopes to help clients navigate the KYC process faster and more efficiently. The Big Four Company has launched an innovative cloud-based platform – KPMG Smart Customer Due Diligence (CDD) – which optimizes CDD activities to help reduce costs and improve accuracy.
Richard Parsons, Director of KPMG Smart CDD, said: “We have combined our expertise in customer due diligence, technology and operational service delivery to create a data-driven CDD approach, providing certainty of costs through a ready-to-use solution that meets regulatory requirements and is preconfigured to industry standards.
Unlike other CDD solutions which only target specific sensitive points in the compliance process, the new solution uses third-party integration as standard, provides granular management information and a robust audit trail, with handoffs and escalations. clear. As a result, the toolkit can manage the entire CDD journey from end to end, improving efficiency and reducing headcount. Compared to other KYC technology companies, KPMG also brings financial crime experts and operational expertise to run the program for high quality results.
Simon Mansell, Head of CDD at KPMG UK Forensic, said: “With organizations recovering from the pandemic supported by growth and expansion, their exposure to risk will undoubtedly intensify as they seek to penetrate further. new markets. With increasing uncertainty and regulatory oversight in global economic markets, they need to know that all relevant customer information is correct. This innovative “out-of-the-box” CDD tool, combined with our operational excellence, gives us the unique ability to create and deliver high-quality service, giving customers peace of mind when they get back on their feet.
According to a statement from KPMG, the CCD system could help customers reduce the total cost of KYC compliance, generating potential cost reductions of up to 40%. At the same time, quality control and quality assurance are built into its intelligent workflow, leveraging a quality framework and deep expertise in financial crime, to also improve the effectiveness of KYC.
KPMG Forensic’s global network of over 3,000 experienced professionals utilize accounting, investigative, intelligence, technology, economics, and in-depth industry skills along with consistent global methodologies to help reduce reputational risk and trade losses, and to improve the obtained value of existing contracts. Its teams are located in the main developed markets such as the United Kingdom and the United States, as well as in the main emerging economies of Central and Eastern Europe, Russia, South America, Africa, the Middle East. East and Asia.