KYC Remediation is the process of elevating the customers’ KYC information to a standard stipulated by the industry and the concerned regulatory bodies. It is pivotal to Financial Institutions(FIs) in their ongoing fight against crimes related to money laundering and terrorist financing and in ensuring their acquiescence with local as well as international regulatory guidelines.
The primary purpose of KYC Remediation is to identify, verify and assess the risk associated with a customer an FI is doing business with. Failure to properly do so may result in fines, revoked license and in some cases jail time for the employees. FIs are therefore required to conduct the necessary KYC remediation process to clean up outdated contradictory data and obtain the most recent information pertinent to a client’s profile.

Obtaining the customer’s relevant KYC information will help the FIs determine the risk a customer may continue to pose and whether they should report the customer to the authorities for suspicious activity.