Who is a KYC Analyst?

Introduction

KYC is a well-known common term for ‘Know Your Customer.’ When a business starts a new relationship with a client, the latter is required to meet some specific KYC requirements. Whether it is a bank, a financial institution, or any business dealing with funds, transactions require KYC for minimizing the risk of fraud.

KYC analysts get an average of Rs 3.5 lacs per annum. They can work onsite or remotely. KYC analysts are needed in current businesses and markets to review the documents submitted for a new customer account. They analyze all associated risks associated, as well as the processes and policies that align with the new customer. They provide compliance advisory support as well. Furthermore, they check whether the documentations comply with global and local standards while interpreting the policies.  

Who is a KYC Analyst?

A KYC analyst is a person who:

• reviews all incoming documents submitted by new clients
• analyses policies and procedures needed to register a new client for a business
• studies market trends and observes customer behaviour to predict any suspicious activity
• alerts the management if there is a risk of fraud
• evaluates high-risk profiles and cross-checks them for further verification

KYC analysts are in growing demand. One can be promoted to chief compliance officer while starting a job as a KYC analyst. They analyze financial risks in compliance with various regulations (about anti-money laundering, tax evasion and frauds, or counter-terrorism). Additionally, they collect clients’ primary data and send it to the compliance departments for verification.

KYC analysts need to be aware of all legal developments and changes in national laws. They contribute to data collection policies and improvements therein.

After the KYC process for the client is done, analysts check for regular updates and monitor the client’s data for possible re-work. In many cases, they are required to check for further documentation if misinformation is suspected or some data files are missing. Additional diligence checks may be required depending on the risk levels.

KYC analysts must be proficient in strategic analysis and must know how to use advanced research tools. They serve as the first line of defence in minimizing risks and preventing any financial fraud.

Job responsibilities of a KYC analyst

The key responsibilities of a KYC analyst include:

• Developing knowledge of AML/BSA regulations
• Completing KYC for onboarding clients and updating data for pre-existing customers (renewing KYC) by reviewing client information and documentation, vendor database, etc.
• Performing data quality reviews of workstations
• Ensuring all data has been documented as per regulations and compliance guidelines
• Ensure all data complies with regulatory, legal, bank, and audit requirements
• Look for other projects assigned within the scope of AML/KYC business quality
• Screening KYC for new clients as per global KYC requirements
• Authenticating information as per local KYC guidelines and global procedures using a variety of independent research tools
• Determining client’s risk profile by analyzing client data, their documents, or any suspicious information
• Collaborating with the CID team worldwide on requests
• Maintaining detailed records on clients for re-reviews
• Tracking and recording any missing documents
• Liaising with clients, front desk, credit, legal, operational, or regulatory authorities as required

KYC analysts should develop the following skills to perform well in their jobs:

1. Observation skills
2. Analytical skills
3. Critical thinking skills
4. Strong communication skills
5. Decision-making skills
6. Effective handling and co-ordination of multiple tasks
7. Tech skills
8. Excellent research skills
9. In-depth knowledge of various types of financial industry terms

Conclusion

KYC analysts are in high demand due to rising digitalization, increasing financial transactions and rising risks for AML and terror funding. A couple of major swindles in the past have necessitated banks and other financial institutions to strengthen their security against such risks. This is why KYC analysts are in demand worldwide: they serve as the first line of defense in preventing any financial fraud.

HyperVerge is one of the best technology partners that offer the fastest identity verification and aids in KYC/AML checks and all kinds of fraud prevention. They have served 700M+ identity and fraud checks in 2.5 years being the largest solution provider across the globe. Read more related articles or reach them at their website for any of your needs here: HyperVerge

FAQs

Can one become a KYC analyst without prior experience?

Yes, it’s possible. However, in that case, one needs to be extra cautious.

What is better AMP or KYC?

KYC especially refers to identity verification and risk measurement; AML has a wider scope. AML includes transaction monitoring, enhanced customer due diligence, sanctions, and PEP screening to monitor risks during and after KYC checks.

What is an AML/KYC Analyst?

The KYC/AML analyst works in the KYC department and is responsible for opening, amending, reviewing, and exiting clients as per established policies and procedures set by the organization.