Governance, Risk and Compliance (GRC)

KYC/CDD at Different Stages of Customer Lifecycle   Customers need solutions to their needs and wants and explore different financial options, to choose suitable institutions for collaboration and services. They need quick responses and easy solutions to their account opening and financing needs.  The financial objectives of the customers might include obtaining finance or funds, to utilize or invest in some profitable business or company or they may require other services that these financial institutions provide, such as credit card, payment gateway, digital payment solution, etc. When we talk about the financial service industry, such as banks, money exchange businesses, money service businesses (MSBs), remittance companies, insurance houses, payment gateways, etc. the needs of most of the consumers are linked with their financial objectives. 

Who Is Your Customer?  A customer is a person, including the individual, business, corporate, organization, etc. to whom the products and services are provided, as part of the business relationship. Customers are the source of business and profits for the organizations.  Customers are required to be treated with care and in an ethical manner, and regulatory authorities require companies and organizations to ensure that fair dealing policies and practices are adopted and implemented. Types of Customers? Customers may be real person or individuals or legal businesses or entities. Customers usually include  salaried individuals,  business start-ups, sole proprietors, traders, housewives, small and medium enterprises, corporate entities, not-for-profit organizations, charitable organizations, welfare trusts, governmental organizations, etc. Nature and types of customers vary from organization to organization.  Customers may belong to different jurisdictions or count...

Introduction to Compliance Risk Assessment Before starting the Compliance Risk Assessment (CRA), it is important to know about some important factors that increase the importance of performing CRA. High competition, changes in business practices, complex products and operations, adoption of technology and digital payment mechanisms, increase in expectations of customers, and increase in numbers of financial crimes, including but not limited to money laundering, frauds, insider trading, human trafficking, market abuse, etc. have led to the emergence of new risks, including compliance risks. This is because, in order to control the above-mentioned broader risk factors, the organizations or institutions are required to take appropriate and robust measures, to ensure that these risks are managed to avoid losses, including financial and reputational losses. Regulators are also working to further, strengthen the regulatory frameworks, which are required to be complied with by the organizatio...

01   What Is Compliance? Compliance means efforts put in by the management and employees of an organization or institution, to ensure that applicable Laws, Regulations, Standards, Rules, etc are complied with. 02   Is Compliance a One-Time Process? Compliance is not a one-time process or activity. Compliance is a continuous process, because Regulators all around the world, continuously work on improving the regulatory framework in different domains.  Regulatory authorities and bodies, revise the existing Regulations, Rules, etc. and they also issue new Laws, Regulations, Standards, Directives, etc. due to various reasons including changes in the market dynamics, business practices, emerging risks, use of technology, the introduction of digital payment mechanisms, etc.  Applicable requirements issued by the relevant Regulators are required to be complied with by the relevant organizations, institutions, companies, etc. for which those are issued by regulatory authorit...