What role do technology applications and commercial databases have in KYC and EDD?
Technological and commercial database applications play a significant role in most AML programs and generally render the KYC and EDD information collection and analysis processes vastly more efficient. In the current anti-money laundering compliance environment, numerous companies offer technology-based and automated solutions for customer due diligence, many of which market their technology solutions as a “complete solution for KYC compliance.” Certainly many of these types of services offer invaluable information to their clients and represent a necessary and critical component of any AML program (such as, for example, a watch list database company that allows an institution to screen its accounts against, in some cases, more than one million names of entities that have been identified as ‘risky’). As you consider various technological services to support your institutional due diligence requirements, beware of the marketing presentations that some service providers proffer. No autom
