KYC Outsourcing - Stand out and Thrive

In the world of modern business, where innovation, adaptability, and compliance are key pillars to success, the choice of outsourcing certain parts of an in-house operation becomes an important consideration. As regulatory requirements tighten and criminal tactics become more sophisticated, the need for robust Anti-Money Laundering (AML) measures intensify each year.

How can firms adequately combat Financial Crime, whilst in parallel thriving in their chosen market and achieve commercial targets?

One strategy becoming more popular is to outsource to a specialist firm, where dedicated teams are seamlessly integrated into business operations. This set-up can complement and accelerate the work of internal compliance teams and allow them to move away from repetitive, low-value tasks.

In this article, we delve into why businesses consider outsourced teams as a strategic asset in the fight against Financial Crime. We will also discuss the success DCM has experienced offering a customisable KYC outsourced service to our customer base.

Access to expertise

Outsourced teams bring a wealth of specialised knowledge when plugged into existing operations. Trained in the latest methodologies, synchronised professionals can offer a level of insight and experience that may be challenging to cultivate in-house. By leveraging external expertise, businesses can stay ahead of the curve in identifying and preventing money laundering activities.

Cost efficient

Operating an in-house AML team can be a costly endeavour over time, especially during peak customer on-boarding season. Outsourced teams provide a cost-effective solution, allowing businesses to benefit from the flexible expertise without the overhead costs associated with hiring and maintaining a dedicated internal team. This cost efficiency is particularly beneficial for smaller businesses looking to strengthen their AML defences without straining their budgets when forecasting a quiet season.

Flexible people > flexible hours

Peak customer activity can often happen outside of the standard business day.  Requesting internal teams to provide coverage during unsociable hours is unappealing. Outsourced teams operate on a schedule that aligns with the business's needs. Whether it's 24/7 monitoring or specific hours of heightened risk, outsourced teams can adapt to the operational demands of the business. This flexibility ensures that businesses have continuous AML coverage, even during non-traditional working hours.

Always on guard

The volume of financial transactions and the complexity of money laundering threats can fluctuate. Outsourced teams offer scalability, allowing businesses to adjust resources in response to changing and unpredictable needs month-by-month. This provides an on-demand solution to a sudden influx of Transaction Monitoring alerts or high-volume KYC processing, which ensures AML efforts remain effective during periods of increased risk or heightened transactional volumes.

Financial Crime handled. What’s next?

Outsourcing AML functions to your dedicated specialist teams allows businesses to maintain a sharp focus on their core operations. By entrusting AML responsibilities to external experts, businesses can allocate internal resources strategically, concentrating on their primary objectives without compromising the effectiveness of their anti-money laundering measures.

DCM success: Provision of Outsourcing and Managed Services

Through 2023, DCM has been a part of many great success stories relating to strategic outsourcing in the Financial Crime Compliance space. A standout example from this year centres on our emerging FinTech client on a rapid growth journey expanding into new markets and jurisdictions.

Our customer didn’t have the infrastructure or internal bandwidth to service new business demand, and experienced significant volume spikes, and backlog accumulation which placed strain and challenge on internal teams.

DCM deployed a specialist taskforce team of 40 consultants who provided a full spectrum solution across 1st Line of Defence (KYC On-boarding, PEP & Sanction Screening, Transaction Monitoring) and 2nd Line of Defence (High Risk sign-off, Assurance and Approvals, and Policy implementation).

Our scalable and flexible solutions provided assurance and certainty to overcome high-growth challenges including complex remedial activity, clearing time sensitive backlogs, and preventing regulatory breaches. DCM has helped to manage and mitigate Financial Crime Risk and accelerate growth for numerous Financial Service firms. Outsourcing has been a major growth area for DCM in 2023!

As we look ahead to 2024, we believe that outsourcing will continue to gain momentum, becoming a prevailing force in reshaping business landscapes. The strategic alliance between businesses and outsourcing partners stands as a testament to the potential for outsourced teams to drive success in the ever-evolving realm of business operations.

If your organisation is looking for a cost-effective solution to outsource its Financial Crime Controls, to access proven expertise and scale in peak moments, our solution could provide the competitive advantage you need for 2024.

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