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Your Guide to
Effective KYC

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Effective KYC is
Within Sight

Effective Customer Due Diligence (CDD) is essential for your organization to truly understand customers and the risk they pose. Old approaches to KYC often lead to missed information, incomplete or inaccurate customer profiles and incorrect decisioning.

It's time for a new approach—one that looks across the entire customer life cycle to ensure customer risk assessments are always accurate.

Achieve an effective KYC program by focusing on these 7 key areas.

  • 1
    Capture Critical Customer Information
  • 2
    Enrich and Validate
  • 3
    Ensure Consolidated Entity Profiles
  • 4
  • 5
    Risk Score Customers
  • 6
  • 7
    Monitor Continiously for Change
  • Capture Critical Customer Information
  • Enrich and Validate
  • Ensure Consolidated Entity Profiles
  • Screen
  • Risk Score Customers
  • Review
  • Monitor Continiously for Change

Capture Critical Customer Information

Obtaining the critical customer information at onboarding sets the foundation for successful CDD. It's challenging to strike the right balance of gathering the right customer information without asking for too much and creating customer friction.

Effective CDD hinges on obtaining relevant information from the right customers, whether they be corporate or retail. Technology can help through automated processes and dynamic or auto-populated forms. There are different strategies to employ depending on type of customer:


Speed and Accuracy

To remain competitive, financial institutions must onboard with speed but balance that with compliance, collecting the appropriate information from the customer.

Explore What's Necessary


Simplify the Complexity

Onboarding can be more complex and time consuming thanks to corporate structure and ownership nuances. Onboarding forms need to be accessible and adaptive to capture the right information for each customer.

See How to Decrease the Complexity

Enrich and Validate

Increase Your Customer Knowledge

Don’t rely only on the information customers give you. Data enrichment and validation are essential for meeting regulatory requirements and building complete and accurate customer profiles. Only after enrichment and validation can you truly understand your customers and their risks.

Manual processing of this information is no longer enough. You need to use the latest advances in technology and data intelligence tools.

Data Enrichment

Third-party data enriches customer profiles and aids in risk assessment.

Enrich with Ease

Data Validation

Customer information must be validated against trusted third-party sources.

Validate Your Info

Ensure Consolidated Entity Profiles

Consolidate Customer Profiles and Identify Relationships

Duplicated and disconnected customer profiles introduce unnecessary risk by limiting visibility. Disconnected records prevent organizations from seeing customers that purposefully provide false information or have close, indirect relationships with high-risk individuals or corporate entities.

With identity resolution and network analytics, your organization can obtain richer, consolidated customer and counterparty profiles, while identifying risky connections.

Deduplicate Profiles

Identity resolution deduplicates customer records and ensures the right information is attached to the right entity.

See Use Cases

Uncover Network Relationships

Network Risk Analytics identify direct and indirect links between customers and related parties, highlighting high-risk relationships.

Reveal Relationships


There could be serious regulatory repercussions for missing an individual on a watchlist. Without the right customer information, screening can result in high false-positive rates, inaccurate hits and ultimately avoidable risk.

With always accurate data, rich customer profiles, and the right screening tools, you can confidently screen your customers and relevant parties for all risks.

Discover Party Screening

Risk Score Customers

Accurately Assess the Customer Risk Level

Assessing customer risk is arguably the most important focus area. If not done correctly, it can adversely impact downstream decisions, causing financial institutions to onboard criminals or fail to identify suspicious activity in a timely manner.

Appropriate risk assessment models should use all previously gathered information and your organization’s risk appetite to dynamically and precisely determine customer risk scores.

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Effective Risk Models

What risk models can you use to assess customer risk?

Dive into the Models

Minimize Adverse Impact

Simulating new models and changes can significantly minimize operational impact.

Assess Impact


Providing the Right Information for the Right Decision

Incorrect decisions can result in wrongly refusing financial services to good customers and unintentionally providing those same services to criminals.

Your review process must be configured to allow the right analyst to review customers at appropriate times throughout the relationship. A consolidated view of all information must be easily accessible so you can make fast, informed, and accurate decisions.

See Case Management Solutions

Informed decisions

Enhance decision making with a modern and connected case management solution.

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Monitor Continuously for Change

Continually Reassess Customer Risk with Perpetual KYC

KYC/CDD is not a once and done process. Customer circumstances and behaviors change. Static, periodic reviews introduce unnecessary risk into an organization, factoring in risk changes years later, if ever at all.

Creating an interdependent relationship between multiple data points, risk and compliance teams can transform a KYC/CDD process, moving it from siloed and static to connected and fluid. It can continually assess changes and update customer risk scores with identified risk changes.

Improve Outcomes

Read this white paper on a Customer-Centric approach.

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Looking to start your journey to effective KYC?

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For more information on NICE Actimize KYC solutions, go here.