The paper is primarily addressed to boards and decision-makers who might be considering the ideal location for a European base or may already be based in Europe and are exploring the EU’s position on a risk-based approach to AML. It is also useful for compliance officers seeking to promote a risk-based approach within their organisation.

Context

It sounds like a contradiction to talk about competitive advantage alongside customer due diligence (CDD), Know- Your-Customer (KYC) and anti-money laundering (AML) regulations. How could time-consuming CDD procedures and complex anti-money laundering compliance requirements ever be transformed into a competitive business advantage? 88% of over 100 respondents to a Pegasystems survey admit that KYC can significantly impact onboarding times and that poor customer experience and a slow onboarding service drives clients into the arms of competitors.1 Competition is severe in a heavily fragmented payments industry with a growing number of big players and disruptive start-ups. All the more reason for Payment Service Providers (PSPs), Acquirers and other Financial Institutions (FIs) involved in e-Commerce to find ways to stand out, add value and gain a stronger competitive position. Many have invested in innovative technology and better customer support, but are they making the most of their KYC process, as part of their CDD/AML programme? Obtaining the legally-required KYC documents for CDD is a critical and unavoidable part of the onboarding process. But through steps such as choosing the right home country and implementing a holistic risk-based approach, the onboarding experience can be improved. And offering a smooth onboarding process within the boundaries of regulatory compliance can create a competitive advantage.

http://www.emergingpayments.org/resources/payments-compliance-in-europe-gaining-competitive-advantage-through-amlkyc-regulations/