Digital transformation of customer due diligence ‘critical’ in 2021

More than half of compliance professionals say digital transformation of the customer due diligence process will have the biggest impact on their risk organisation over the next 12 months, according to new research.

A poll from digital compliance specialist NorthRow found that 63 per cent of compliance leaders don’t measure or analyse their “ambers” – clients that generate an ambiguous risk result during onboarding that requires investigation.

The study also revealed that 40 per cent of respondents view amber management as a compliance issue and not a wider business issue.

In fact, only 27 per cent see it as a first line of defence issue, with 33 percent seeing it as a problem for their clients.

But according to NorthRow, 90 per cent of compliance costs sit in 10 per cent of amber cases.

“Managing your ambers is key to moving beyond simply knowing your customers towards truly understanding your customers,” said Adam Holden, NorthRow, chief executive.

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