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: One of the important Regulatory Compliance requirements of Anti-Money Laundering Frameworks is the performance of activities which is known as Customer Due Diligence.  Before onboarding, the customers are unknown to the company or business because of the non-verification of identification information of the prospective customer.  Due diligence is a process that is performed, to assess the possible risk of Money Laundering or Terrorist Financing (ML/TF), associated with the prospective customer. Due diligence enables organizations to avoid onboarding criminals such as money launderers or terrorists and associated people or organizations. Without performing due diligence, the organizations carry the risk of dealing with customers who may be money launderers, terrorists, or other criminals.   In the past, various organizations, especially banks have been  significantly   penalized by the regulatory authorities, due to the weak Customer Due D...

Use of Data Analytics by Compliance Function   Data analytics or simply analysis of data in a meaningful form is the need for various functions and departments working in an organization. Similar is the case with the Regulatory or Compliance function, of the organization, which is established to ensure compliance with applicable regulatory requirements, by the management and employees of the organization. Data re quired to assess the compliance status may be dispersed in different departments and systems, which need to be identified and extracted on a timely basis. One of the problems is the legacy data, which may be incorrectly maintained, by the business and operation departments of the organization.  For example, the information related to account opened by the organization of different customers may be dispersed with different business departments or branches. Such information may contain errors or violations of applicable regulatory requirements due to various reason...