Challenges in your KYC process
The Know Your Customer process is not a one-time job at the beginning of new customer acquisition, but rather stays with you throughout the entire customer relationship.
In addition to meeting regulatory requirements, it is more important now than ever to focus intensively on customers and their needs, and thus on the customer experience. Regulatory requirements and customer experience must be harmonized so that KYC does not become a barrier to business. A low level of process automation contributes to a negative customer experience and prevents efficiency increases.
Challenges in the area of KYC
The regulatory requirements regarding identification and verification in the KYC process are complex. At the same time, the requirements are subject to frequent adjustments.
Increasing time investment due to the usually manual KYC processes. This typically results in long waiting times for the customer and a large number of inquiries.
In the area of KYC, there is an inherent tension between compliance and employee as well as customer satisfaction. Regulatory breaches often lead to enormous financial damage as well as reputational damage.
Let us do the work
As an obligated auditing firm under the Money Laundering Act, PwC handles your identification and verification process. We initiate the process with your client and review the information provided for accuracy and completeness. You decide at which point of your KYC process and to what extent we support you. Rely on our extensive experience in the KYC area and let us keep you informed through continuous reporting. Maintain full control over your KYC operations. We enable full transparency through continuous reporting and ad-hoc export of KYC profiles.
Our solution: Managed service of customer identification and verification
PwC has taken on the challenges and developed a solution for all those who have to fulfill due diligence requirements under the Money Laundering Act before entering a business relationship. With "smart Identification & Verification", obligated companies can choose to fully transfer their legal entity identification and verification process to PwC and gain a real strategic competitive advantage.
As part of a managed service, PwC handles the identification and verification of legal entities for obligated companies. As an auditing firm, PwC is itself obligated under the Money Laundering Act and can therefore be consulted as a so-called reliable third party for handling processes in the area of obligations under the Money Laundering Act.
Through the smart use of artificial intelligence in data collection, PwC is significantly increasing efficiency with a particular focus on customer satisfaction. At the same time, PwC is putting an end to time-consuming processes in customer acquisition (front office) and excessive staff costs in the back office units.
The PwC solution "smart Identification & Verification" can be customized according to the processes and needs of obligated companies.
Your benefits at a glance
As an auditing firm, PwC always ensures a process in line with current regulatory requirements.
smart Identification & Verification relieves the workload of your sales department as well as your middle and back office units. Lead times are reduced significantly.
In addition, the quality of data collection in your customer profiles increases. The solution achieves a significant upgrade of the customer experience.
The solution is scalable and customizable to meet your exact needs.
As part of the KYC process, regulatory requirements for customer identification and verification must be provided on an ongoing basis throughout the lifecycle.
The information provided by the customer must be reviewed regularly and on an ad hoc basis to ensure that it is up to date and accurate. In doing so, your sales department as well as your middle and back office units are once again involved in collecting the information from the customer. Furthermore, any compliance risks must be assessed on the basis of these changes. In many cases, the regulatory requirements to update customer data may result in additional time and effort as well as processing backlogs and, as a consequence, outdated customer profiles.
We support you in your updating obligations.
We provide a modular solution that completely handles the updating process. This involves automated information extraction from documents and public sources, among others, including identification of the beneficial owner. An automatic completion check and client outreach functions to speed up data collection increase customer satisfaction. In order to act in a regulatory compliant manner, a screening of customers for sanctions, politically exposed persons as well as negative press releases is supplemented with artificial intelligence in real time and worldwide.
- Outsourcing the identification and verification process to PwC
- Establishing dedicated resources to perform identification and verification operations
- Reporting continuously
Have we sparked your interest?
Get in touch with us! We will be happy to assist you and look forward to presenting the solution to you in detail. Please enter your business e-mail address.
What is the Know Your Customer (KYC) process?
Know Your Customer refers to the requirements of the Money Laundering Act, which requires obligated parties to clarify the identities and verify the risks associated with a business relationship. The process fits into the broader framework of a bank's money laundering prevention policies. KYC processes are implemented to ensure that natural persons in business relationships are indeed who they claim to be. Originally, these regulations applied only to institutions in the financial industry, but they are now applicable to the non-financial industry as well.
What is meant by due diligence?
The term due diligence refers to the identification ("Who is the customer really?") and verification ("Is the customer really who he claims to be?") of new and existing customers for obligated parties under the Money Laundering Act (Section 3 AMLA). This process can be extremely time-consuming, especially in corporate banking. In particular, international corporate complexes nested over many levels make it difficult for obligated companies to find out whose ownership and control a company actually has. The question of who is the beneficial owner of the company "at the end" is particularly important here.
What is a beneficial owner?
The beneficial owner is the natural person who permanently owns or controls the contracting party or the natural person at whose initiative a transaction is finally effected or a business relationship is finally established. Legal representatives, managing partners or partners of the contracting party shall be deemed to be beneficial owners qua fiction if no natural person can be identified even after the obligor has conducted comprehensive checks to determine whether a natural person is the owner of or otherwise exercises control over a legal entity or company. Further information can be found in the Interpretations and Application Notes on the Money Laundering Act issued by the German Federal Financial Supervisory Authority (BaFin).
Who are the obligated parties under the AMLA?
Section 2 of the Money Laundering Act lists a number of obligated companies. In addition to the traditional credit institutions and financial services institutions, however, insurance companies, capital management companies, lawyers, auditors and tax consultants as well as real estate agents and commodity dealers are also obligated under Section 2 of the AMLA.
Who is a reliable third party as defined by the AMLA?
As an obligated party under the Money Laundering Act, companies are by law considered so-called reliable third parties in order to be called upon for the handling of processes in the area of obligations under the Money Laundering Act. Section 17 of the AMLA permits the utilization of third parties in this context for the fulfillment of the general due diligence obligations pursuant to Section 10 of the AMLA.