With economic crime activity increasing, firms continue to look for a deliverable cost-effective solutions and operation which are regulatory compliant and customer-centric, whilst combatting new-emerging sophisticated scams.
Market landscape
$5 billion
Banks and firms were fined almost $5 billion* “anti‑money laundering” infractions, breaching sanctions and failings in their “know your customer” systems in 2022 globally.(1)
(1) Global anti-money laundering fines surge 50%
*Source: Financial Times
£34.2 billion
UK’s Financial Services sector estimated to be around £34.2 billion annually.(2)
(2) (LexisNexis Risk Solutions (2023), UK Financial Services Sector Spending £22k Per Hour Fighting Fraud
£22,200ph
On average, financial services firm are spending around £22,200 per hour on financial crime compliance.(3)
(3) (LexisNexis Risk Solutions (2023), UK Financial Services Sector Spending £22k Per Hour Fighting Fraud
Current common client challenges
Resources
Resources
Availability of resources with the specific skillset and experience are limited, with the current market in high demand.
Technology
Technology
Lack of automation, manual processes and legacy systems means high costs for organisations. Whilst manual, non-digital customer outreach continues to result in a poor customer experience.
Budget
Budget
Limited budgets available within firms to invest in new technology systems and operational requirements such as resource, strategy, and frameworks. Despite this, firms are continuing to spend in a difficult landscape, with Lexis Nexis estimating financial crime costing £194.6million per year, per firm. (Source: True cost of compliance report 2023)
Regulations
Regulations
Pressures on senior leadership to ensure there is consistency in AML frameworks, policies. Updates to Regulations result in significant change required in policy, procedures, and processes, which are inherently difficult to implement.
Our solutions
Data Analytics
Our Forensic Data Analytics market-leading technologies provide insight and uncover hidden patterns from large volumes of data. We help clients uncover activity, in order to take preventative action and tackle inappropriate behaviour.
Onboarding
KPMG have technology solutions to transform your onboarding process. We can build and implement onboarding portals to deliver an excellent customer journey.
KYC Lifecycle Solutions
KPMG have end to end KYC solutions to automate the CDD journey. Our solutions have built in workflow with industry-leading standard modules with the ability to configure data fields, policy and risk appetite to align to KYC requirements. Our solutions are fast to deploy, rapidly scalable, and can integrate with third-party aggregators to optimise data enrichment.
Ownership & Control
KPMG’s Declaration of Beneficial Ownership (DBO) tool visualises and manipulates ownership data from third party sources to demonstrate the customer ownership structure.
Screening
Our KPMG Third Party Intelligent Diligence (K-3PID) tool uses millions of data sources and searching in multiple languages to collect client due diligence data and perform adverse press reviews in minutes.
Read moreTransaction Monitoring
KPMG’s Transaction Monitoring Alert Classified (TMAC) and Outlier Analysis solutions use advanced machine learning algorithms to learn from existing TM investigations and transactional data. These solutions process, classify and prioritise alerts generated by a rule based TM system.
Sanctions
KPMG have several Sanctions technology enablers which can perform a variety of processes, from assessing the effectiveness of your customer and payments sanctions screening systems as well as enabling targeted and detailed transaction and conduct review.
Reporting & Data Analysis
KPMG can provide a comprehensive suite of Management Information reports to drive performance of CDD Operations and portfolio analytics which provides insight in to CDD data.
Ongoing Monitoring
Our end to end KYC solutions automatically trigger periodic reviews and are driven by flow based automation to ensure that only missing information is requested from customers.
Perpetual KYC
KPMG’s pKYC addresses ongoing monitoring, remediation, onboarding and CDD review challenges which affect firms globally on a consistent basis. It is designed to help financial institutions reduce the overall cost of their CDD functions by optimising and minimising the manual operations so that staff can focus on value-add services.
Read moreWhy KPMG?
Transformation end-to-end lifecycle
We have a broad range of services and expertise to support the transformation of our client’s economic crime functions.
Subject matter experts
Our industry subject matter experts provide in-depth knowledge throughout the life of the engagement, ensuring client needs and quality standards are met.
Cost effective
Our clients have benefitted from significant cost efficiencies by making use of our on-shore/off-shore blended delivery models and technology solutions.
Quality
High quality outcomes are driven across all operations through our ‘Right First time’ model.
Operational experience at scale
We use our extensive expertise of standing up and running large operations across multiple industries and business areas.
Skilled resources
We can help you deliver high quality operations through our SMEs, KYC Academy, Skilled Associates and Managed Services capability.
