Overview

Financial crime compliance (FCC) remains one of the most complex and high-stakes challenges in the financial services industry. Your organization is facing mounting pressure from rising regulatory expectations, resource constraints, and the threat of substantial penalties for non-compliance.

Firms are actively looking for ways to meet shifting obligations while optimizing processes, including the responsible integration of GenAI and automation, to drive efficiency without compromising compliance integrity.

Why It Matters

Know your customer (KYC) and transaction monitoring program teams, for both fraud and anti-money laundering (AML), are under pressure and expected to do more with less while navigating the heightened regulatory scrutiny and evolving client expectations. The core challenges you face include:

Complex & Evolving Regulatory

Adhering to evolving regulatory expectations and priorities across regions
Making increased used of available data and AI/ML to improve accuracy and efficiency
Lack of compliance budget to remediate gaps

Insufficiently Skilled Resources

Insufficient staffing and training to manage TM and KYC processes
Siloed functions – poor communication between TM, KYC, and other AML processes (e.g., results of investigations and KYC refresh)
Poor attrition management

Inadequate Monitoring & Controls

Inadequate understanding of the risks presented by customers: industry changes not reflected in KYC processes; failure to timely reflect changes in behavior into the AML program; weak red-flag inventory
Transaction monitoring system is not accurately calibrated to capture all red-flags
AML/KYC controls are not adequately documented/reflected in GRC platform

Insufficient Documentation

Results of investigations are inappropriately documented due to lack of customer information or failure to use all available information
CDD/EDD standards not consistent across the enterprise
Discrepancies between written policies and procedures and actual operations

Emerging Technology & Data Quality Issues

Outdated or incomplete customer and transaction data (e.g., beneficial ownership) leads to poor risk scoring, imprecise reviews, and flawed SAR/STR investigations
Regional approach to KYC resulting in no enterprise standard for customer data / fragmented or bespoke processes
Reliance on third-party platforms and fragmented legacy systems is driving data quality issues, requiring banks to implement complex controls to ensure accuracy

How Capco Can Help

We help you strengthen compliance while reducing cost and complexity through scalable, high-impact solutions. Our team brings deep regulatory expertise and operational experience to drive efficiency, enhance control effectiveness, and deliver measurable outcomes.

We provide end-to-end financial crime compliance support by combining strategic advisory with hands-on execution across core FCC functions, including transaction monitoring investigations and KYC reviews. Key capabilities include:

Intelligent KYC (iKYC): Automate manual workflows and validation checks within the KYC review process using agentic AI - applicable to both CDD and EDD.
SAR Genie: Draft narratives across key FCC operational processes using a customizable GenAI tool, including SAR.*
AML & Fraud Program Advisory: Identify key gaps, enhance governance, and right-size your program to align with risk exposure to improving coverage, clarity, and efficiency across first and second lines of defense.
FCC Technology Platform Support: Optimize your technology stack for seamless data quality, lineage, and integration – driving smarter, faster outcomes.
Innovation & Implementation: Embedding automation and GenAI solutions into FCC workflows to reduce manual effort, improve accuracy, and unlock scalable operational gains, without compromising compliance integrity.
FCC Operations Execution: Redesign and execute a high-performing, cost-effective operating model o increase output and resource efficiency for your AML program.

*Only applicable to the US at this time.

Success Story

KYC Transformation Clears Path for $10B Acquisition & $100M+ Growth

Client Challenge

A leading financial institution’s outdated KYC model was limiting scalability, increasing regulatory risk, and creating customer pain points. At the same time, the client was replacing its KYC and transaction monitoring platforms, requiring a complete redesign of the control framework.

Capco's Solution

Future-state KYC operating model (1LOD and 2LOD)
Custom CRR methodology aligned to platform modernization
CDD and EDD review procedures
KYC program implementation roadmap
Prohibited entities analysis to enable compliance growth

Client Outcomes Achieved

Closed MRA gaps to enable a $10B acquisition and avoid significant regulatory penalties
Reduced 2LOD involvement in outreach, streamlining compliance oversight
Drove 5% lift in qualified household growth valued at $100M+ in revenue aligned to growth strategy
Enabled cross-sell capabilities into new customer segments