Reported by KYC Portal CLM 

Why Traditional KYC Reviews Are No Longer Sufficient

Manual periodic KYC reviews have long been the industry standard. However, these periodic reviews often lag, exposing organisations to undetected risks. The gaps between reviews allow for significant changes in a customer’s risk profile to go unnoticed. Consequently, companies face increased operational risks, compliance fines, and reputational damage. 

The transition from traditional to perpetual or continuous KYC (pKYC) involves ongoing monitoring rather than periodic checks. This allows organisations to understand their customers’ risk profiles throughout their lifecycle.

How KYC Portal CLM Enhances Perpetual KYC

KYC Portal CLM offers a unique dynamic configuration engine that lets you automate compliance processes. By defining custom workflows and alert systems, KYC Portal ensures that every aspect of KYC is fully automated and compliant with regulatory standards. This automation reduces risk exposure from weeks or months to mere hours.

One of the standout features of KYC Portal CLM is its ability to automate all aspects of compliance. From customer onboarding to continuous monitoring, the system handles everything.

Proactive Monitoring vs. Reactive Measures

Traditional KYC methods are reactive, dealing with risks only after they have been identified. In contrast, perpetual KYC with KYC Portal CLM is proactive. The system continuously monitors customer behaviour and triggers alerts when it detects anomalies. This proactive approach significantly reduces the chances of undetected risks.

One of the most critical features of KYC Portal CLM is its real-time alert system. Whenever an activity deviates from the norm, the system raises an alert, allowing your team to take immediate action. This real-time monitoring is essential for maintaining a high level of compliance and reducing the organisations’ risk exposure to the second that the risk alert happens.

Regulatory requirements are continually evolving. KYC Portal CLM allows for real-time customisation to meet new regulations. Once configured, these adjustments are instantly applied across all past and present customer data, ensuring continuous compliance.

Enhancing Operational Efficiency

By automating routine tasks, KYC Portal CLM frees up your compliance team to focus on high-value activities. This optimises resource allocation and enhances overall operational efficiency. Your team can now concentrate on strategic initiatives, knowing that the automated system handles day-to-day compliance.

Read full report: https://www.kycportal.com/pkyc-risk