Objective

To help a global investment bank address critical deficiencies in its AML and KYC processes.

Key Challenge

A global investment bank was found to have insufficient and ineffective AML processes with respect to its KYC program. The existing structure was not robust enough to understand the ownership and control structure of its respondent banks, hindering its ability to perform requisite sanctions and PEP screening. Documentation of screening results was erratic and deficient.

CRISIL Solutions

CRISIL partnered with the investment bank to design, implement and operate a risk-assessment process for all AML procedures and systems. The CRISIL team ensures consistency in CDD and KYC processes across the globe, considering regional variations in defined AML policies. We have also reduced manual effort by automating processes. Services are delivered under a managed services model. As part of that process, CRISIL has:

• Automated the process of OFAC Screening, PEP Check and Negative news screening using RPA, and enhanced the process efficiency by reducing human errors, generating cost savings for the bank;
• Developed a robust risk-based Customer Identification Program (CIP) under the overall KYC compliance process during regulatory inspections;
• Automated various regulatory reports using a user-friendly dashboard;
• Ensured adequate due diligence was carried out for all customers, irrespective of whether it was already done by the respondent bank;
• Maintained and updated all the KYC documents in one repository with proper hierarchy defined.

Client Impact

• Reduced costs by approximately 55% by automating the processes using RPA and offshoring to India.
  
• CRISIL now takes end-to-end ownership of the process, including staffing, training, delivery, quality, and automation.
  
• The CRISIL partnership mitigated regulatory concerns surrounding AML and JYC. A robust, mostly automated system freed up resources to address other critical issues, and also reduced human errors.
  
• Process is now fully and seamlessly scalable across geographies and LOBs;
  
• Secured data storage.
  

Questions

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