KYC models need upgrade to cope with crypto, digital banking changes
Know Your Customer (KYC) and anti-money laundering approaches will need a complete overhaul to cope with the wave of digital change, the mainstreaming of blockchain technology and efforts to bank two billion unbanked people, says Ideco.
Know your customer (KYC) and anti-money laundering (AML) is a worldwide focus in the financial services sector, as regulators seek to embed greater transparency in transactions and stamp out raud and money laundering. But KYC and AML management models in their current form present challenges. “Effective KYC and AML are vital, as a wave of digital change and the mainstreaming of blockchain technology increases financial services’ risk profiles, but the current KYC and AML models need an urgent upgrade if they are to cope with future demands,” says Marius Coetzee, CEO of SA-based identity specialists Ideco.