To KYD or Not to KYD: It Is Hardly a Question

The Protiviti View

Matt McGivernShaheen DilBy Matt McGivern and Shaheen Dil,
Managing Directors

Protiviti’s Data and Analytics practice

The importance of “know your customer,” or KYC, activities to any AML compliance program is well known. A much less known – but equally crucial – component of an AML program is “know your data,” or KYD, which feeds into KYC and other AML compliance modules.

To run their AML compliance programs, financial firms use a variety of software to review customers, analyze transactions to identify suspicious activities and provide analytical and research capabilities to support suspicious activity reports (SARs). Both SARs and KYC rely on the quality and accessibility of data, which requires knowledge of that data – where it resides, who uses it, what actions are performed on it, etc. While over-stretched AML departments may not want to hear that they now need now to be more proficient in data management, KYD activities are needed…

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