24th June 2014

KYC Remediation

The Importance of KYC Remediation and Why You Should Be Doing It

The Purpose of KYC Remediation

There are several different ways that institutions and companies can go about KYC remediation. One of the most popular and common KYC remediation tactics is to screen, verify, and identify customers. There are many compliance products that a company can use to accomplish this efficiently, and it may also be done manually. The main goal should be to determine which clients are most at risk of executing financial crimes and which ones do not need to be monitored so closely.

The purpose of KYC remediation is to verify the identity of the person you are doing business with. If a company does not have sufficient information about a client, that client might be able to launder money or partake in other corrupt activities without any red flags being raised. This could get the company in serious legal trouble down the line, possibly leading to fines and even jail time for employees.

The KYC Remediation Process

Financial institutions are strictly regulated in regards to financial crime. Because they play such a central role in the financial sector, they are given the responsibility of reporting suspicious activity and helping to ensure that money laundering does not occur. KYC remediation is necessary for institutions to properly meet this responsibility.

Once a company has compiled enough information about a client, they can then go through the necessary remediation process. The remediation process is where they clear up any contradictory data, organize the information they have acquired, and determine what else is left for them to find out about the client.

As soon as the KYC remediation has been successfully completed, the company can then determine the risk that the client poses and continue to add to their portfolio. This is a very important step, as it helps to decide whether the company or financial institution must report the client to authorities for suspicious activity or potential corruption.

The Importance of KYC Remediation

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