Case Study – Financial Services

Streamlining Compliance for Financial Advisors with Automated KYC/AML Solutions

Client Overview:
A network of independent financial advisors (IFAs) operating across Asia needed a robust solution to manage stringent Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements. The group sought to maintain personal client relationships while ensuring compliance with various financial regulations.

Challenge:
The IFAs faced challenges in manually conducting detailed KYC/AML checks for their diverse clientele. The process was time-consuming and prone to human error, leading to potential regulatory breaches that could result in fines and reputational damage.

Solution:
The network of IFAs turned to Link KYC to help automate and standardize compliance checks across their operations.

Implementation:

 

1. • Platform Integration: The automated KYC/AML service was integrated into the IFAs’ existing client management processes for seamless operation.

• • Customization: The information collection forms were tailored to collect the specific types of information required by financial regulators, catering to both individual and corporate clients. 

• • KYC/AML Screening: The system was configured to perform real-time checks against global sanctions lists, PEP lists, and adverse media databases, reducing the need for manual review and ensuring they remain compliant. 

• • Risk Assessment: Each client was assigned a risk profile based on the outcome of the automated checks, enabling IFAs to apply enhanced due diligence when necessary.

• • Compliance Workflow: An approval workflow was established with clear escalation paths for any potential matches, ensuring that compliance officers could quickly address any issues.

• • Audit Trail: All client interactions and compliance activities were automatically logged, creating a comprehensive audit trail for regulatory oversight.

Results:

 

• • The IFAs experienced an 80% reduction in the time required for client onboarding and ongoing due diligence vs PDF and email methods.

• • Compliance errors were significantly reduced, with a notable improvement in the detection of high-risk clients.

• • The network successfully navigated a regulatory audit without any non-compliance issues.

• • Advisors were able to allocate more time to client service and advice, thanks to the efficiencies gained from Link KYC.

Conclusion:
By adopting Link KYC, the network of financial advisors was able to focus on their core competencies of providing personalized financial advice while remaining confident in their compliance with regional AML and KYC regulations. This case study demonstrates the value of automation in managing complex compliance requirements and the benefits it brings to the financial advisory sector.