Digital change and the associated increasing regulatory requirements are deeply affecting the business models of financial service providers and lead to many changes and challenges for banks. We support you in adapting your processes and structures to the current challenges and thus meet the regulatory requirements.
Passcon’s top 10 tips about how to turn your TM Organization into a production environment and prepare it for the future
The press is currently full of news about Transaction Monitoring related to high fines from regulators. From our experience, many banks have created interim solutions instead of focusing on sustainable TM organizations. These interim solutions have shown the following negative side effects:
(1) They are very costly due to ad hoc solutions and subsequent adjustments (2) They are not 100% suitable and do not fully meet the organizational needs (3) Since the interim solutions are often not perfectly suitable, high fines still occur and damage the bank’s image
Our Recommendation: Focus on building a suitable, long-lasting TM as it is of the same importance for banks as focusing on a sustainable KYC organization. These two parts are strongly interconnected and together avoid high fines and reputation losses.
Many (financial) Institutions are currently facing the decision of whether to in-or outsource their KYC process.
The reason for that is, that their KYC departments often show a lack of trained staff and at the same time cause higher costs due to many freelancer deployments.
Although time is limited and regulatory requirements are increasing only, for many of them, outsourcing is not an option as they want their KYC department to stay within the company.
Hence, the institutions have no time for hiring, training and establishment of suitable KYC teams the situation remains unchanged.
passcon’s BOT (build, operate, transfer) Model.
In times where regulations are constantly changing and cost focus is all around, KYC is for many banks of pivotal importance and extremely challenging!
Inadequate controls of money flows and resulting high fines from local regulatory authorities force financial institutions to act.
Banks across the globe spend huge amounts for optimization of their current KYC process and many software firms promise a digital and automated KYC process.
But how does it look like on a day to day basis? We know it from our daily work in passcon’s KYC Factory.