How to build and manage sustainable KYC

UK financial institutions find themselves at the forefront of the drive against money-laundering, a crime that is estimated to cost the UK economy £365bn each year, according to Transparency International UK.

This joint paper with PwC lays out a transformative approach to KYC – one that frees institutions from endless remediation cycles and manual checks, and instead uses external data, analytics and automation to turn the process on its head.

Download our paper now to find out how

Money-laundering is estimated to cost the UK economy more than £365bn each year

Yet the volume of new businesses is also growing at an exponential rate.

Financial institutions find themselves locked into periodic remediation cycles, often struggling to deal with the ever-growing backlog of KYC reviews. Using third-party data sources and advanced analytics, PwC and Experian can help financial institutions break free from remediation to establish effective and sustainable KYC.

Download the whitepaper now

Off-shore directors

100% rise over ten years in the number of UK companies with no UK-based directors (2011-2021)

Risky connections

116% rise over the three years to 2022 in the number of UK companies exposed to jurisdictions defined by the EU as 'high risk' for money laundering

Zombie directors

There are 6500 UK companies currently registered that were incorporated with directors who were dead at the time of formation

Cash-handling businesses

There are more than three times as many cash-intensive businesses in the UK as there were 12 years ago. These businesses are often considered vulnerable to money laundering

In this paper we cover:

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  • The money laundering threat

    Why it is critical institutions get KYC right

  • Challenges

    The challenges institutions face today in implementing effective and sustainable KYC

  • Data and advanced analytics

    How external data and advanced analytics is opening up a new approach to KYC

  • Transforming capabilities

    How institutions can transform their capabilities through three key steps

A sneak peek into:

The money laundering problem - and why it's on the agenda

The money laundering threat

Experian data shows that there are two-and-a-half times as many companies in the UK as there were 12 years ago. More and more registered businesses have characteristics that may indicate a risk of money laundering.

Financial institutions providing services to commercial business customers are therefore facing a combination of increasing numbers of businesses they need to interact with, increased complexity of financial crime risks and typologies and greater scrutiny from regulators.

The costs of not getting it right

Detecting and preventing money laundering is a huge expense which financially regulated institutions are constantly tackling. Institutions that fall short of the Financial Conduct Authority standards in Anti Money Laundering also face hefty fines and reputational damage if they fail to act effectively.

  • In May 2021, the FCA contacted every CEO of UK retail banks to warn them of “common control failings identified in anti-money laundering frameworks“. The regulator demanded action and made it clear that the clock was ticking.
  • In December 2021, a Tier 1 UK bank was fined almost £265m following convictions for three offences of failing to comply with money laundering regulations.
  • In April 2022, the FCA spotlight fell on AML at challenger banks, stating that where “challenger banks promote the ability to open accounts very quickly to attract customers, there is a risk that information gathered at the account opening stage is insufficient to identify higher risk customers.”

Did you enjoy the read?

Read our joint paper with PwC to find out how your organisation can pivot towards automated KYC

This paper lays out a transformative approach to KYC – one that frees institutions from continuous remediation cycles and manual processes through use of external data, analytics and automation.

Download the full paper >

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Written by Grant MacDonald

For over 20 years, Grant Macdonald, our Market Engagement Director, has been pioneering the creation and delivery of market insights across the identity, fraud, financial crime and credit landscape.

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Download the whitepaper - "Breaking free from remediation"

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