Financier Worldwide

FW moderates a discussion on KYC technology for screening, verification and monitoring between Matt Galvin at AB-InBev, Gwendolyn L. Hassan at CNH Industrial, Derek Ryan at Deloitte LLP, and Jane Grinblat at Reed Smith LLP.

Authors: Jane Grinblat

FW: Could you explain why it is so important for companies to know their customers against the backdrop of today’s regulatory environment?

Galvin: The regulatory environment has become less predictable and generally more strict. Markets such as China, Brazil, Guatemala and France have changed dramatically over the last few years. Many companies are more worried about what their service providers and customers are doing supposedly on their behalf than what their own people are doing. Companies should have strong controls not only on spend for their employees, but also with respect to third parties and business partners working on their behalf.  Typically, company controls tend to be more focused on the former – so compliance is often put in the position of creating and implementing much of the controls around who companies worth with.

Ryan: Economic crime, identity theft and cyber crime are having a significant impact on society. The effects of human trafficking, terrorist financing and tax evasion are also becoming more prevalent, and this is driving ongoing changes in the regulatory environment. Regulators and enforcement agencies have an expectation that organisations should play a pivotal role in preventing economic crime and protecting customers’ interests. Organisations need to have a comprehensive understanding of their customers, and customer behaviour, to ensure that they are not involved in these types of illicit activities. This allows them to make informed decisions about how, or indeed if, they should engage or continue to engage with them.

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