The customer onboarding process is the most important point of the connection between the customer and the company. This point, which is seen as the first start, is an important step in keeping your company safe and avoiding risks. In particular, regulated financial institutions must comply with the requirements of AML, CFT, and KYC regulations and customer onboarding processes. Following the KYC controls, another important point is the follow-up of financial transactions.
Customer Onboarding and Monitoring Process Requirements
As we mentioned above, the first thing to do is to apply KYC guidelines in customer onboarding processes. Customer identification is the most critical point of
KYC
. The control processes applied in the KYC checklist ensure that the business has the necessary information to open an account with the customer, and the risk level of the customer is determined.
Also, KYC refers to the checks made at the beginning of the customer relationship to identify and verify that they are who they say they are. This is especially necessary for organizations subject to AML regulations. That is, before initiating the business relationship in this part, it generally allows the creation of a risk profile of the customer by collecting his personal data and identity documents.
Then, through CDD, they evaluate whether the information given by the customers during registration is correct. In addition, as long as there is a customer relationship, CDD checks should be made on an ongoing basis, which requires keeping track of transactions and updating them. Customer Due Diligence procedures include enforcement, PEP, and adverse media screening. The individuals in this data are high-risk customer profiles for companies. For this reason, companies should determine customer risks when opening a customer account and follow a process accordingly.
If identified as a high-risk customer, the Enhanced Due Diligence process is applied to the customer. If there is no suspicious situation in the controls made up to this stage, the customer's account is opened.
Companies should continue to make these checks to their customers at regular intervals. According to AML obligations, companies have to control the financial transactions of their customers.
How do companies speed up their Customer onboarding and monitoring processes?
The guidelines and regulations for financial companies are very broad. Financial service providers, such as banks, should take measures to ensure that customer account profiles are accurate and risk-based. In the past, the use of manual methods by companies to combat financial crime was complex. Today, financial companies use AML scanning services such as Sanction Scanner to meet legal requirements. By using the Sanction Scanner, companies are protected against the risks of crime that they will encounter within the scope of blacklist controls, thanks to the artificial intelligence-enhanced Global AML, PEP, and Adverse media data that are updated every 15 minutes. By scanning their customers in this data, they can create an AML control program suitable for their risk levels. Determining the identity of the customer and its risks is necessary not only during the acquisition of the customer but also after because the risk of a customer can change over time, so Ongoing monitoring should be planned, especially for high-risk customers. Institutions can prepare reports of query results with structured data in Sanction Scanner solutions and view all up-to-date information about the person searched in the reports. In addition, with the Customer Transaction Monitoring solution, customer transactions can be monitored in real-time to detect high-risk and suspicious transactions. If a suspicious transaction is detected, its processing is immediately stopped, and cases are allowed to be recorded for investigation. In this way, institutions have the power to instantly intervene in cases without waiting for the end of the day . Dynamic Customer Risk Assessment (Dynamic Customer Risk Assessment) is used to visualize strategy and risk management data. They can strengthen their businesses' AML compliance by learning more about high-risk customers based on the rules set by institutions. They have the chance to set scenarios and rules according to their customers' risk levels without writing any code. At the same time, customers can assign points by occupation, age, income, country, currency, and define alarms. It enables them to decide on their actions according to their alarms easily.
Companies perform their Sanction scanner and Customer onboarding and monitoring processes quickly, effectively, and reliably thanks to all these.
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