Know Your Customer Due Diligence Navigator

Customer due diligence is at the heart of financial crime prevention.

Know Your Customer (KYC) / Customer Due Diligence (CDD) is one of the most important requirements in combating financial crime. Despite huge investments, poor execution remains the reality for many business entities. Most often it is due to its multi-faceted and cross-functional nature. The complexity of execution makes it difficult for business entities to see where their problems lie and what solutions are available.

Typical operational issues may include:

• Weak demarcation between policies, procedures, underlying processes and technologies
• Highly manual processes
• Cases with low-quality results
• Ineffective use of technology, data and analytics

The result is low-quality decisions regarding financial crime, costly remedial action and regulatory fines, sub-optimal execution times, adverse impact on customer satisfaction and reputational damage.

The KYC/CDD Navigator provides a holistic view of the challenges your CDD function faces. It helps you find and organise simple solutions.

• Insights, experiences and data points gained through hundreds of CDD customer projects
• Supports our end-to-end CDD improvement methodology
• Applicable to the full spectrum of financial services operating models
• We use the KYC/CDD Navigator as an overarching taxonomy by which we assess the performance of your CDD capability through maturity analysis, tailored diagnostics and roadmap development

KPMG has leveraged experience working with clients around the world to bring structure and clarity to this challenge. The KYC/CDD Navigator is a simple way to address this challenge, focusing on the full spectrum of maturity levels. It covers the key components of effective KYC/CDD, taking into account their sequencing and interconnectivity. Behind all this are defined benchmark standards and industry-wide knowledge of CDD maturity.

The KYC/CDD Navigator can quickly provide clarity on the actions needed to transform your KYC/CDD operations. The benefits identified vary by client, but operational efficiency gains of 30-40% are not uncommon.

These actions can lead to higher-quality decision-making regarding financial crime and can lead to improved customer satisfaction, operational excellence in CDDs, and economic growth and success.

KYC/CDD Navigator solution infographic

• Policy and risk management - A linear implementation of the guideline into business rules and data requirements. Accurately assign risk to your on-site customers.
  
• Processes and services - Increase efficiency in the activities required to guide your customers through the KYC/CDD life cycle, such as onboarding and name screening.
• People and organisation - Realignment of personal activities based on your organisational framework. Fine-tune performance management, leadership/culture and training to ensure your people are equipped with the skills they need and work in an environment optimised for success.
• Data, technology, and analytics - Optimisation of internal and external data (third parties) to improve your risk-related decision.