Dec - Jan - 20188IN MY OPINIONEvolving Efficiency of KYC ProcessBy Brad Mitchell, CIO, CTBC Bank Corp. (USA)Regulations like the Anti Money Laundering/Bank Secrecy Act (AML BSA) demand strong risk assessment and control of activities typically associated with money laundering. The CTBC Bank Corp. utilizes KYC processes to strongly comply with all existing rules and regulations.Technological Trends and Challenges in the KYC Space with AML BSAThe current KYC system at banks and other financial institutions are very labor and time intensive. They are usually rule based systems relying only on the data it contains and the rules that are created for it, with no forward learning capabilities. Some banks don't have enough staff to attend to the number of AML BSA alerts it receives and there is an industry rate of 85 percent or greater false positive rate right now. An adaptive system that is truly designed to capture, identify, categorize, and provide more granular data on the already identified high risk accounts is required because that is a big area of focus and concern for federal regulators as well as banks. In order to ensure proper amount of due diligence by the bank in executing the KYC process, CTBC Banking Corp. system utilizes KYC systems that greatly reduce the number of false positives, are far more automated, less time consuming, and provide predictive modeling. Identifying the Right KYC Technology Solution ProvidersWe are looking for companies that already have a financial background, whether in the up and coming fintech world or an established pattern like the Statistical Analysis System (SAS) who are experienced with the regulations. There are a vast number of companies that claim to have great ideas for KYC solutions, utilizing buzz words like AI but without the capability and experience to assist banks in ensuring compliance with regulations. It really comes down to meeting the required role of not just throwing buzz words around, but
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