In this blog series about anti-money laundering programs and know your customer initiatives (AML/KYC), we’ve explored the challenges and associated regulatory requirements that come with these efforts. We’ve also taken a deep dive into how financial firms can manage these programs, whether via home-grown talent, explored in our paper, Leveraging enhanced talent development programs to increase anti-money laundering workforce effectiveness, or via a managed services effort or even robotic process automation (RPA), as described in our paper, Anti-money laundering and know your customer programs: sustainability through managed services, and its corresponding presentation.

We have noted that many options are available, and that financial firms might often benefit from a mix of approaches. We’ve even looked at some of the factors that can help a financial business decide on the right approach.

The next step on this journey, then, is getting ready.

Talent building

If your aim is to build talent in-house, you can adopt a few strategies to get your AML efforts up and running:

  • Establish a formal AML training program. Treat this program as an ongoing business investment in operational risk reduction.
  • Build a role-based program, aligned to the business’s competency models and that allows for certification.
  • Include blended learning approaches and build in ongoing reinforcement techniques.
Managed services

If you are aiming toward a managed services AML/KYC model, these are the basic steps:

  • Agree on your effort’s scope, and map out a transition plan.
  • Don’t lose sight of key plan elements such as standardizing processes, choosing a location and updating relevant training, which may or may not dovetail with the training approach above.
  • Following the transition, keep an eye out for added efficiencies and ongoing improvement opportunities.
  • Keep an eye on the critical issues, such as transparency
RPA

Finally, if you’re aiming for an approach involving RPA, some of your steps will be similar to those for managed services. You’ll want to:

  • Define the scope of your effort, and map out your change plan.
  • Know the regulatory considerations involved in outsourcing your AML/KYC function.
  • Establish your outsourcing plan, including the contractual provisions, for greater clarity and be certain of the scope that will be covered.

These are only some of the steps you’ll want to take, and if your business is like many, you may well be combining several approaches in your comprehensive plan.

Managing your AML/KYC workforce talent can be challenging, but help is available. As we’ve seen over the course of this series, a powerful solution is within your reach.

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