KYC/KYB remediation best practices for compliance and ops teams

Remediation projects are one of the toughest challenges compliance teams face. When regulators or auditors discover deficiencies in KYC/KYB files, companies must review thousands of records, collect missing data, and update outdated information. Poorly executed remediation can cost millions in resources, damage reputation, and weaken customer trust.

But remediation is also an opportunity. With the right strategy, you can clean up your data, improve risk management, and strengthen your compliance framework for the future.

What Is KYC/KYB remediation and why it matters

KYC/KYB remediation is the process of reviewing and correcting incomplete, outdated, or inaccurate customer information. It typically involves:

• Updating expired IDs or documents
• Collecting missing beneficial ownership details
• Correcting errors in addresses, professional status, or corporate structures
• Reclassifying customers based on current risk

Remediation is often triggered by regulatory audits, internal reviews, or the integration of a new compliance team after a merger or acquisition. Without it, institutions risk fines, loss of licenses, and reputational harm.

How to start a remediation project

Every successful remediation begins with a clear assessment. The first step is to run a gap analysis:

• Review existing policies and KYC/KYB procedures
• Compare them with current regulations and industry standards
• Identify missing documents, expired files, or outdated ownership structures
• Estimate the scale of the remediation: number of customers affected, man-hours required, and potential risks

With this baseline, you can plan resources, set milestones, and allocate responsibilities. Tools like AML risk scoring help quantify exposure and prioritize where to begin.

Prioritize by risk your KYC/B remediation

Trying to remediate every customer file at once is inefficient. Instead, segment customers by risk:

• High risk: customers in sensitive industries, high-risk jurisdictions, or complex ownership structures
• Medium risk: customers with some risk indicators but not critical
• Low risk: simple files with minimal risk factors

Focus on the high-risk customers first. This reduces immediate regulatory exposure while buying time to address lower-risk files. Continuous risk-based segmentation ensures that resources are always used effectively.

Use automation workflows to reduce manual work

Manual remediation is time-consuming and error-prone. To accelerate projects:

• Deploy user verification to automatically detect expired IDs and request new documents
• Leverage business verification to capture ownership changes in real time
• Activate pre-built checks from the scan library to identify missing or inconsistent attributes
• Track the progress of tasks with case management dashboards

Automation doesn’t just save time—it also improves accuracy and creates an audit trail regulators can trust.

Engage customers with clear communication

One of the biggest challenges in remediation is getting customers to respond. Many delays happen because outreach is confusing or burdensome. To improve engagement:

• Send personalized requests that explain why information is needed
• Provide digital channels for easy document upload
• Set reminders and escalation paths for non-responsive customers
• Offer guidance on acceptable document types and formats

By reducing friction, you increase completion rates and shorten project timelines.

Make KYC/B remediation sustainable

Remediation should not be a one-off exercise. To avoid falling back into the same cycle:

• Integrate continuous monitoring through real-time KYC and KYB
• Refresh customer data automatically when documents expire or ownership changes
• Re-score customers dynamically using AML risk scoring
• Store all updates in case management to keep records audit-ready

This approach transforms remediation into a continuous process, ensuring compliance stays strong year-round.

Challenges to anticipate and how to overcome them

Even well-planned remediation projects face obstacles. Common challenges include:

• Volume of files: thousands of records create operational pressure. Use scan library automations to filter and prioritize.
• False positives: repeated alerts slow down progress. Fine-tune risk scoring models to focus on relevant cases.
• Customer resistance: non-responsive customers delay projects. Improve engagement with digital-first user verification.
• Coordination across teams: compliance, sales, and operations may not be aligned. Centralize tasks and reporting with case management.

How Ondorse supports KYC/KYB remediation

Ondorse simplifies remediation projects by providing tools built for compliance teams:

• User verification to refresh and update KYC data in real time
• Business verification for continuous KYB updates and beneficial ownership monitoring
• AML risk scoring to prioritize work by risk level
• Scan library with pre-configured checks to identify gaps instantly
• Case management to track remediation tasks, decisions, and audit trails
• Compliance workflows to orchestrate all remediation actions across teams

By combining automation with risk-based prioritization, Ondorse helps institutions cut costs, meet deadlines, and stay audit-ready.

Conclusion

KYC/KYB remediation is often seen as a burden, but it can be a catalyst for stronger compliance. With clear planning, risk-based prioritization, automation, and sustainable monitoring, remediation becomes an opportunity to strengthen customer knowledge and reduce long-term risk.

If you want to run remediation projects faster and more efficiently, discover how Ondorse can help your team scale and stay compliant.

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