Effective and efficient Know Your Customer (KYC) resourcing

“At Lysis, we work with many different clients and therefore see a variety of approaches to the KYC process. This enables us to rapidly identify easy wins and efficiency gains as well as uncovering deeper strategic realignment requirements”, stated Chris Oliver, Head of Lysis Operations.

With a focus on seamless integration, our near-shore model offers firms the best of both worlds because we deliver tailored Client Lifecycle Management (CLM) and Anti-Money Laundering (AML) services and support in a cost-effective manner without compromising quality or sustainability.?Our?well-established on-shore capability in the U.K. and our experience in developing off-shore KYC delivery centres have served as the springboard for the establishment of our recent near-shore operating centre in Cape Town, South Africa, which is professionally equipped to provide bespoke CLM and AML services and support to all our global clients.

A typical team structure for CLM/AML operations consists of 20-30% on-shore and 70-80% near-shore resourcing. Our experience and research indicate that for many firms the optimum balance of cost effectiveness, efficiency, and quality are achieved by using an on-shore/near-shore model. This creates a blend of business/client facing expertise supported by more cost-effective manpower. The cost of our near-shore resources can be as little as 50% of our competitive on-shore rates. We are also constantly looking for Tech solutions that further complement our resources and enhancing value and efficiency for our clients.

Rapid and scalable solutions

The size of our financial crime (FC) teams can vary according to unique client requirements and includes review teams and management. Lysis also has the flexibility to assemble and scale teams very quickly according to the specific size and requirements of different client projects on a global scale.?

One of our clients, a U.S. crypto asset firm wit global reach approached Lysis to complete?a regulatory-driven KYC and Transaction Monitoring Remediation project to tight deadlines and scaling a team of more than 60 analysts to remediate 100,000’s of cases and alerts and escalated red flags to the Suspicious Activity Reporting Unit.??The remediation was applicable to both U.K. and U.S. standards.

A rapid start and the ability to add immediate value to a client project are crucial because the cost linked to FC compliance can easily skyrocket if not managed effectively. This is one of the main reasons why Lysis has developed a methodology to help FC operations to gain better control and manage FC teams effectively and efficiently. From a cost perspective, it provides a scalable solution to balance experience and team size and structure to deliver efficiencies with a direct effect on the bottom line.

This methodology uses proprietary benchmarks with psychometric testing to identify the profiles of high-performing KYC analysts. By adopting this approach, analysts can be benchmarked effectively, and Lysis can assess analysts’ FC specific aptitudes, in combination with targeted interviews and knowledge testing. This method can be used to build the capabilities for resourcing, both for inexperienced and experienced FC staff and can be deployed during the hiring stage or at any time during the project life cycle.

For more refined deliverables such as ensuring adherence and comprehension of distinct KYC policy, Lysis uses a??bespoke e-learning and e-assessment tool tailored to the specific policies, procedures, and processes of firms and it provides ongoing assessments of each analyst’s knowledge and capability throughput for the duration of a project/programme. The result is therefore consistent and delivers high-quality outcomes and predictable performance trends.

When the methodology is applied correctly, the measurable results can include the creation and maintenance of a scalable standard across people and teams through people and teams testing, training, and process improvements. This can result in the deployment of structured and agile teams that deliver the required effectiveness and efficiently to drive down costs linked to regulatory compliance.

We have first-hand experience on a global scale?

Regulators always have a clear expectation from firms to deliver specific compliance requirements within specified timeframes. This calls for expert assistance and the unique ability to scale and assemble resources at a rapid rate to ensure that compliance requirements are indeed delivered within the specified timeframes.?

Chris concluded by saying that “Lysis has the required capacity to deliver on this by selecting the right combination of resources, according to a specific methodology.?We also ensure that standards are maintained while also paying attention to policy updates being applied accurately. This attention to detail helps firms to navigate the everchanging regulatory landscape while also staying competitive and attentive to their end clients’ experiences and satisfaction.”