How Capco supported a local Malaysian bank's end-to-end KYC processes


Like most financial institutions today, a local bank in Malaysia was facing the ongoing challenge of meeting industry compliance standards. The organization aspired to be on par with international banking standards while maintaining a high cost efficiency. Before engaging with Capco, they were facing an uphill battle in changing the organization’s mindset, such as moving the business towards automation to reduce manual processes and back-office operations support. 

Capco Malaysia helped to establish an efficient management of end-to-end know your customer (KYC) outreach with the bank. We initiated the project with a core team of our KYC mobilisation experts to draft KYC remediation as-is process documents and perform gap analysis. Since then, we have been expanding and supporting multiple areas within the risk & compliance unit, including transaction monitoring unit (TMU), customer due diligence (CDD), and anti-money laundering (AML) checks.   


Along with providing highly skilled risk & compliance experts, project leads, consultants, visual basic (VB) & light automation specialists, Capco Malaysia helped the bank with the following key services: 

  • Developing multiple improvements to the process and operation model with real-time regulatory compliance via VBA, Macros and other Six Sigma and Light Automation initiatives. 
  • Creating and building a new semi-automated macro template for KYC outreach, plus ODD/CDD for retail non-individuals, corporate and retail individuals. 
  • Building standard operating procedures (SOPs) from scratch for KYC outreach and ongoing ODD/CDD retail non-individuals, corporate and retail individuals. 
  • Further enhancing of the standard operating procedure (SOP) for TMU quality assurance and reporting. 
  • Building a screening tool, TMU dashboard and TMU quality assurance framework. 
  • Performing quality checks for KYC outreach - both inbound and outbound cases. 
  • Carrying out data management, management information system (MIS) and reporting for the KYC remediation team. 
  • Designing and preparing KYC outreach tracking, productivity, and weekly and monthly AML transaction steering committee (ATSC) reporting. 
  • Developing a tailored KYC training deck and conducted KYC /TMU to the local bank’s headquarters as well as other branches in Malaysia. 
  • Bringing in an expert for the TMU role to identify and perform gap analysis with recommended solutions to improve investigators’ productivity, reviews, and TMU operations.  
  • Introducing process improvements for significant transactions extraction and analysis. Capco can implement a macro that consists of a set of rules to assist in calculating and identifying mapped transactions to reduce the need for human intervention to assess and identify significant transactions. 
  • Facilitating other process improvements, such as a ‘variable investigation methodology’ which focuses on the skills of the analyst and the type of scenarios to assign to the analyst given their individual skills/strength. This way, the investigators were able to minimize the turnaround times of case reviews based on the skillset and complexity of the cases.  
  • Enhancing reporting for tracking performance (KPIs) of the investigators, gap identifiers and addressing any defect accordingly. 
  • Providing daily support and expertise about understanding and managing KYC compliance. 


In partnership with Capco Malaysia, the local bank is constantly upskilling their knowledge in risk & compliance, automation, KYC, and AML compliance.  The bank has progressed effectively and efficiently on the objectives of addressing and complying to the compliance projects as per its plan and schedule.  

Capco continues to help the bank pursue further cost savings and efficiencies through automation, along with other initiatives beyond the risk & compliance unit. These include enhancing internal decision-making, reporting skills, as well as providing lateral thinking exercises to help the bank further adopt a ‘change culture’ mindset and management style.