KYC policy: compliance and implementation

Customer
An international commercial bank providing a broad array of traditional and modern banking services to over 2.3 million customers.

About the Project
KYC — Know Your Customer
KYC involves identifying and verifying customers to implement controls that mitigate commercial risks in dealings with partners. For the bank, this process encompassed tasks related to:

• Risk management
• Regulatory compliance
• Anti-money laundering (AML)
• Internal guidelines

Challenges

• Significant time and resources required for manual checks on customers, employees, and partners.
• Lack of a reliable, continuously updated monitoring system to deliver timely information.
• Unregulated checks by various bank divisions on paid resources, leading to unplanned costs.
• Reputational risks due to outdated counterparty information, increasing the potential for dealings with fraudsters.
• Financial losses from bad loans due to undetected fraud at the verification stage.
• Inability to quickly respond to negative changes in customer histories.

Solutions

1. Developed a unified database, regularly updated, that consolidates information on key audience segments.
2. Implemented Camunda as the orchestrator of all banking processes, with the DMN engine for scoring and decision-making.
3. Created a customizable interface tailored to each department’s verification needs.

Results
The KYC implementation resulted in:

• A 20-fold increase in verification speed for customers and employees, reducing information access costs.
• Transparent, automated, and predictive analytics for all bank interactions, alongside up-to-date operational control of the customer base.
• Reduced staff involvement in verifications due to automation.
• A 20% reduction in bad loans.
• Minimized risks associated with fraudulent activities.
• A 30% decrease in fines from the National Bank of Ukraine (NBU) through improved compliance.