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By John Leahy Senior Product Manager
June 30th 2023 | 3 minute read

At the conferences we’ve attended around the world this year, two major themes crop up time and again: how to 1) increase operational efficiency and 2) reduce risk.

In our conversations with clients and prospects it’s clear these themes are particularly important when it comes to financial institutions’ anti-money laundering (AML) and know your customer (KYC) responsibilities – tasks that eat up resources and carry a major threat of financial penalties and reputational damage if conducted poorly.

Three stage automation

AML/KYC duties fall into three main areas:

  • Client onboarding.
  • Ongoing due diligence checks.
  • Monitoring for suspicious transactions.

Automating the end-to-end processes in each of these areas is crucial if firms are to keep both regulators and customers happy – allowing for speedy, hassle-free client checks while ticking all the regulatory compliance boxes.

Effective AML/KYC processes demand complete and accurate information. Because that information has to be right from the get-go, much of the industry focus has been on automating the initial client onboarding. A variety of technology solutions, including Deep Pool’s KURE software, are available to tackle this need.

Far fewer solutions exist though to automate the post-onboarding, ongoing checks – tasks that are just as vital. Here Deep Pool’s KURE really leads the way.

Automated account refreshes and activity monitoring

Ongoing client due diligence is a never-ending requirement, with zero tolerance for error. Accounts must be reviewed periodically to ensure each client’s profile, documentation and data remain current. Any missing/expired documentation has to be updated. Sanctions and politically exposed persons (PEP) statuses can change and require regular review. Transactions need to be monitored in real time to identify and flag any suspicious activity.

KURE automates that effort.

Its automated account refresh periodically reviews each account in line with the client’s risk profile to ensure all documents and data are current, and generates emails to prompt clients to update any missing/expiring documentation. Automated sanctions screenings at frequencies based on the initially-assigned risk level ensure any changes in client circumstances are monitored in the appropriate timeframe, freeing users to manage by exception.

KURE also scans for suspicious transactions and changes to customer/static data, such as a name or address update, or revised name on a bank instruction. Its real-time activity monitoring spots AML risks, triggers automated alerts for investigation, and blocks accounts or transactions when suspicious events occur – allowing potential issues to be addressed before they become an actual breach. Where appropriate, comprehensive suspicious activity reports (SARs) are sent to the relevant regulatory body within stipulated timeframes.

Plus KURE’s systematic data retention and audit tracking framework alerts users when retention periods have been reached, and allows specific customer data to be targeted in a controlled fashion, enabling data controllers and processors to remain GDPR compliant.

The solution to compliance

Proper AML/KYC control depends on multi-step processes integrated at each stage of the client journey. Nuances based on circumstance and jurisdiction add to the complication. Carrying out the necessary checks for an individual is one thing. Monitoring numerous corporations with complex entity structures, a legion of directors and investments in multiple vehicles in a range of jurisdictions takes the challenge to a whole new level.

KURE replaces the manual data-tracking tasks firms traditionally rely on. It minimises errors. Reduces compliance risk. Makes internal teams more efficient. Provides process scalability. And allows staff to focus on the real issues that need investigating.

At Deep Pool, we are dedicated to helping clients maximise their success. Deep Pool provides the industry-leading compliance software and deep consulting expertise financial institutions need to automate their end-to-end AML/KYC and FATCA/CRS reporting processes. Our team combines compliance experts, business analysts and software engineers to create a unique blend of industry know-how and experience, producing efficiencies, scalability and client servicing benefits that transform users’ businesses.

KURE, our flexible AML/KYC and FATCA/CRS reporting solution suite, supports all types of regulated financial firms, including banks, asset managers and service providers. Deep Pool is headquartered in Dublin, Ireland, with offices in the United States, the Cayman Islands and Slovakia. For more information, visit: www.deep-pool.com.

John Leahy
John has been with the Deep Pool Group since 2012. He drives product development, vision, strategy, and execution across a cross-functional team, serving 3 Fintech/Regtech products. John holds a Postgraduate Diploma in Product Management from Technological University Dublin.