Banking professionals often consider compliance to be a barrier to what they do. They might think it’s simply about ‘ticking boxes’, so as not to fall foul of regulators or internal auditors. In so doing, they don’t consider the real, broader reasons for compliance – or what could go wrong without it.

What are the real reasons for KYC and AML compliance?

Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations and sanctions compliance are integral to organisational success. Banks failing to do what they’re supposed to do can enable criminals and harm victims. The importance of stopping criminals and terrorists is inarguable. However, too many banking professionals still think purely in terms of fines and bad press.

KYC is instrumental in stopping criminals in a number of ways. It largely exists to prevent bad actors from accessing the financial system. KYC software that asks customers to provide details about themselves enables compliance teams to identify them. This also helps to deter prospective bad actors and allows for the accurate identification of sanctioned parties.

Collecting customer information with KYC software also means investigators can identify when a customer has committed a potentially criminal act with their accounts.

KYC isn’t a burden, it’s an opportunity

Yes, the KYC process may seem burdensome and repetitive. Considerable time, money and resources may be needed for your institution to get it right. However, you cannot deny its importance. KYC regulations aren’t just there to keep your firm compliant with financial regulations or to satisfy regulators. That’s because they’re integral in deterring and catching criminals.

In any case, we can give you just the right KYC software solutions here at SmilePass. We’ve developed and designed them to enable your institution to rise to the latest, ever-evolving KYC and AML regulatory changes.

There’s no need for KYC compliance to be a barrier to your organisation’s ambitions. Indeed, it is precisely because of your bank’s wider growth goals that you should take heed of the genuine and pressing importance of complying with KYC standards. To find out how our KYC software can help streamline the process and reduce customer drop off rate, take a look at our KYC brochure.


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