The business case for automating customer due diligence, FICA compliance

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Automation has been labelled as a way to tighten up the corners, without cutting them. An apt description, it’s all about using technologies to up productivity, boost efficiency, reduce errors and save businesses a lot of time without having to make any sacrifices when it comes to quality or performance.

Ongoing CDD helps businesses stay compliant with regulatory requirements, protects their reputation and ensures that they avoid legal penalties because suspicious transactions can be detected and flagged as soon as they happen. But it is fairly time-consuming and complex and when you’re doing it manually, it’s easy to make mistakes.

These tools provide real-time identity verification and can perform automated risk assessments, to help businesses stay compliant without having to deal with the unnecessary administrative burden. Moreover, automation can cut error rates by up to 50%, reducing compliance risks and enhancing the accuracy of due diligence. With penalties for non-compliance increasing, as seen in recent regulatory actions, automating these processes is not just a cost-saving measure but also a proactive step towards reducing legal risks and enhancing operational resilience.

 

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