Currently, when it comes to know your customer (KYC) requirements, the industry’s focus is mainly on the first stage of the customer relationship, with regulators prescribing thorough due diligence at the onboarding stage, augmented with the occasional periodic refresh.
But in these uncertain times when fortunes and indeed reputations are being made and lost in days and weeks rather than years, is the current guidance enough to ensure you really do know all about your customer?
After all, political exposure, close associates, shareholders, directors, adverse media, legal issues, sources of wealth and corporate affiliations can change the profile of a customer at any time.
So, what do firms need to be aware of today to not only minimise risk but also seize the opportunity for tomorrow?
Hugo Chamberlain explores the growing importance of continuous monitoring for private banks, wealth managers, and other large financial institutions in an article published by Fintech Bulletin on 26 August 2020.