Ensuring KYC/B compliance: Don't trust the process, trust the result

Are your compliance processes leaving you exposed to risks? For years, businesses have relied solely on standard operating procedures (SOPs) to ensure that their KYC obligations are carried out consistently and accurately towards their compliance requirements. The assumption has always been that following the process guarantees the desired outcome. However, this is a risky misconception. More often than not, it’s not what we observed on the field.

The flaws in relying on SOPs alone for KYC compliance

There are inherent reason why following an SOP will not produce the desired outcome:

1. Human fallibility:

Even the most well-trained teams make mistakes. People interpret rules differently, and no amount of initial training can eliminate all variation. The human element introduces deviation and inconsistency. Over time, staff members may drift from strict adherence to procedures, introducing discrepancies into your KYC checks.

2. Blind spots in procedures:

Every process has blind spots. It’s impossible to anticipate every potential deviation or edge case when designing an SOP. A rigid process may overlook real risks or fail to adapt to new challenges, leaving significant gaps in compliance.

3. Effort on compliance varies over time:

As companies grow and evolve, so do their priorities. The effort put into compliance may ebb and flow, depending on the business cycle, staffing changes, or external pressures. A procedure that worked in the early days of the company might no longer be effective as the company scales, regulations tighten, or risks change.

The reality on the ground: SOPs don’t guarantee compliance

After working closely with compliance teams, we realized that following a process doesn’t guarantee compliance with regulatory requirements. Even the most diligent compliance teams face challenges in keeping up with evolving standards and regulations, despite following SOPs. Too often, we, at Ondorse, encountered situations where the most diligent compliance teams were convinced they followed their SOPs diligently, but random checks (like an auditor or a regulator would do) revealed that compliance standards weren’t consistently met.

Actually, we also met with compliance teams that already knew that their dilligency was challenged by the reality of the field.

Automated, exhaustive compliance audits: now, trust the result

At Ondorse, our stance is clear: you should have the ability to evaluate your entire KYC database in real-time, with a single click, ensuring continuous compliance towards your requirements. This is where Ondorse Scan feature comes in.

Unlike SOPs that rely on human adherence, Ondorse Scan provides real-time, automated analysis of your entire KYC database, eliminating the risk of human error and procedural blind spots. By analyzing your entire KYC database at once, the Ondorse Scan reveals compliance gaps across various dimensions. Whether it's missing UBO or director identification or expired documents, the Ondorse Scans provide a comprehensive review of every case in your database. This real-time visibility allows you to quickly identify deviations from your compliance requirements and take proactive steps to address them.

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The Ondorse Scan relies on a powerful library of over 30 compliance checks, each designed to uncover specific compliance gaps—like missing documents or outdated KYC information. Once a scan is completed, it generates a detailed report listing problematic cases, offering you the tools to explore and prioritize remediation efforts. This automated process not only ensures exhaustive coverage but also empowers your compliance team to respond swiftly, addressing high-risk gaps first and ensuring that your entire customer knowledge remains aligned with regulatory standards.

Report, plan, budget, and prioritize your KYC/B compliance with confidence

Executives, auditors, and regulators prefer clear, quantified insights over no visibility at all. By providing a report that qualifies and quantifies these gaps, you give them the visibility they need to.

Once you can see the compliance gaps in your KYC data, the next step is remediation. Armed with data, you can now budget, plan, and prioritize fixes. High-risk breaches can be addressed first, and you can allocate resources efficiently based on the severity of the issue.

Conclusion

In compliance, it’s not enough to trust that your team is following the process. You need visibility into the results. By leveraging automated audits that are Ondorse Scans feature, you can evaluate your entire KYC database with the click of a button, ensuring compliance and gaining the confidence of regulators and auditors alike. Ready to ensure your compliance processes are bullet-proof? Schedule a demo of Ondorse Scan today.

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