Know Your Robot: How can RPA help Banks address AML/KYC Regulations?

The AML/KYC regulatory landscape continues to impose greater costs to financial institutions as they begin to collect, refresh, and analyze more and more customer data. New Customer Due Diligence (CDD) requirements set forth by the Financial Crimes Enforcement Network (FinCen) include the Final Rule for beneficial ownership and control, and with effect from May 11, 2018, and the EU 5th AML Directive, which also mandates beneficial ownership collection for legal entity customers. Fines for AML and KYC deficiencies have topped billions of USD for both US and EU banks for lack of sufficient AML/KYC programs, failure to file Suspicious Activity Reports (SARs), CDD deficiencies, and other violations. The implications for financial institutions go well beyond additional documentation for customers to complete. The current AML/KYC regulatory framework calls for the implementation of a substantial framework to collect and analyze customer data on both a retroactive and ongoing basis.