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Home Our thinking Know your customer

Know your customer current challenges

How do you compare to your peers?

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It is clear that Know Your Customer (KYC) practices to prevent money laundering have generally fallen short of regulatory expectations – leading to billions of pounds in fines, significant costs for remediation work and the overhaul of certain KYC practices. As a result, anti-money laundering is now a board-level issue for most financial institutions as they recognise the implications of regulatory scrutiny and compliance costs.

Despite major investment to address these issues, financial institutions continue to face significant challenges – and new regulations across the EU, US, and Australia continue to set the bar higher.

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10 Billion

About the survey

Our survey provides a snapshot of the current KYC challenges banks face and how they are handling them. It explores attitudes to the emergence of industry-wide solutions in the form of KYC utilities or managed services, their likelihood of adoption and the providers they are considering.

We received responses from over 20 financial institutions with revenues of over £500 billion – generally representing UK-headquartered banks with global operations.


KYC Report

Prioritising KYC at board level

Over 50% of survey respondents indicate KYC is a priority for their board. We found there is competitive advantage to be gained from doing it better, but that there is a lack of detailed understanding of associated costs and how they might be mitigated.

Board level

The drive for significant change

Our survey reveals the scale of the task institutions are facing when it comes to managing remediation activities and ensuring processes are appropriate to meet new requirements. 85% of firms are carrying out some or significant levels of change to their KYC practices.

The Drive

Industry KYC utilities as a viable option

We explored the potential to outsource certain aspects of KYC activity to utility companies and found 94% of respondents consider all KYC record types as potentially suitable for transition to a utility. However there is some caution around how the regulators will react.


Low awareness about KYC utilities

We looked into how quickly a utility model might be adopted and responses reveal this option is still at the early stages of consideration – with compliance within their own firm being the top priority. This means there is a lack of detailed awareness of the possibilities, and limited engagement with utility providers, with only a third of respondents aware of KYC utility providers. However, there is a sense some firms will start to explore this route further in the near future.

Low Awareness
  1. Look beyond short to medium term remediation and towards the longer term strategic operating model for competitive advantage.
  1. Consider industry-wide utilities and undertake a 'proof-of-concept' to assess their suitability and business case.

Our report provides a snapshot of how the financial services industry is handling KYC challenges and a series of recommendations to help overcome them.

Download the full report

Our experience

We helped Thomson Reuters launch the market's first managed service for 'Know Your Customer'.

“The talent they presented us with really demonstrated that they have good depth on the bench. They are a very experienced, very professional, supportive firm.”

Anna Mazzone, Thomson Reuters

We helped Thomson Reuters launch the market's first managed service for 'Know Your Customer' [_EY-nwW4x7Y]

Contact us

Our expertise and experience in KYC gives organisations confidence to transform their operations. To find out how we can help you manage your KYC activities, please get in touch.

Gavin Neilson

Gavin Neilson
PA financial services

Email | LinkedIn

Vaughan Jenkins

Vaughan Jenkins
PA financial services

Email | LinkedIn


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