Financial compliance is due for a significant shake-up as the ‘Know Your Customer’s Customer’ (KYCC) approach gains traction. PwC predicts that KYCC will become a regulatory norm within five years, driven by increasing scrutiny of financial crime, corruption, and money laundering. The shift from KYC to KYCC will demand more transparency and information about the end users of financial services, adding complexity to the compliance process.
KYCC is expected to have far-reaching implications for financial institutions. It will necessitate enhanced data analysis skills and new technology to manage the increased volume and complexity of data. The cost of non-compliance could be high, with potential fines, reputational damage, and loss of business.
The move towards KYCC is also likely to accelerate the digitisation of financial services. Blockchain technology could play a key role in enabling KYCC by providing a secure, transparent record of transactions. However, there are challenges to overcome, including data privacy concerns and the need for global standards and cooperation.
To prepare for the shift to KYCC, PwC advises financial institutions to start investing in data analytics capabilities and digital technologies now. They should also begin to build relationships with regulators and other stakeholders to shape the future regulatory landscape.
Go to source article: https://www.pwc.co.uk/press-room/press-releases/financial-compliance-set-for-shake-up-with-advent-of–know-your-.html