MSB, FinTech and Cryptocurrency

Know Your Customer Alerts

A money services business hired us to address a significant workload arising from Know Your Customer (“KYC”) alerts. The client obtains KYC information from an intermediary and was facing difficulties with the validation of KYC-information, as they do not collect the information directly. We were able to perform an analysis on the KYC validation errors that the client was facing and provided a risk-appropriate outcome that allowed the client to dramatically reduce their manual review workload. This enabled the client to focus on their product offerings while accepting a nominal risk increase, as nearly all the KYC alerts were from errors that were not compromising the ability of the client to accurately identify the customer. Bates has since assisted this client with a quarterly rereview of our recommended adjustments to the KYC alert generation and the review confirmed that the original recommendations held despite significant growth in the client’s user-base.