I recently co-hosted an industry workshop with Arachnys, a KYC and AML data specialist, exploring the potential benefits and challenges associated with adopting Perpetual KYC. Limited to just 20 participants, we were joined by representatives from several leading banks and asset managers including, Goldman Sachs, Investec, HSBC, Morgan Stanley and Citi bank along with other leading city institutions who are at various stages of their Perpetual KYC implementation.
Over the past 18 months we have seen a growing interest in adopting continuous refresh processes and transitioning away from the more traditional Periodic Review. This was certainly reflected in the results of a poll held during the workshop which indicated that 73% of the audience were engaged in planning or working towards the delivery of Perpetual KYC and 36% were experiencing implementation challenges.
These results highlight that while the potential benefits of perpetual KYC are considerable, there are a number of obstacles to overcome. As discussed in the workshop, before embarking on a plan of action, it is critical to develop a clear vision for the end state and understand what successful implementation will involve.
Below are some of the insights discussed during the workshop, which should be of interest to other financial institutions who are considering the transformational journey to perpetual KYC.