Know Your Customer tips

Know Your Customer tips

Alexandra Kris, Partner, IntellTech Lab at COSA

With over ten years of experience in risk management, Alexandra works with COSA to develop innovative solutions that meet the ever-evolving compliance needs of companies worldwide. She has supported teams across the globe while working from Paris, Hong Kong, London, Brussels and Kyiv. She has notably developed risk management products and services, and managed the delivery of top quality content in the fields of compliance and corporate intelligence.

Managing Know Your Customer practices is not only a banking affair. Businesses of all types are vulnerable to legal and reputational risks associated with customers. Here are some tips to mitigate these issues and enhance the resilience of your compliance programme:

  1. Even though there are fewer legal requirements that entail for companies to do KYC checks, customers you pay may represent serious risks for your business so do not forget about them when you develop your compliance programme and risks assessments;
  2. Risks areas that may involve your customer include sanctions, exports controls, fraud, money laundering, intellectual property violations among other regulatory breaches and reputational issues;
  3. Mitigate these risks as soon as you on-board a new customer;
  4. Consider the customer’s location, the type of products they are buying, the amount of the transactions and the duration of your relationship with them;
  5. If you define that your new customer is part of higher-risk groups, then conduct HUMINT [human intelligence] to verify or identify these risks, before you put controls in place to mitigate them

See more at Compliance Periscope