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Turning regulatory burdens into revenue streams

20th May 2024
Brought to you by
Wolters Kluwer logo

Wolters Kluwer provides software to tax and accounting professionals.

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Anti-money laundering (AML) and know your customer (KYC) are infamously time-consuming compliance measures, but it doesn’t have to be this way.  

The key to making AML profitable lies in streamlining compliance processes to minimise costs and maximise efficiency. In this article we’ll take a two-step approach, by first looking at how to streamline the process to reduce costs, then maximise efficiency to generate revenue.  

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4 ways to streamline your compliance process  

1. Invest in automation  

Embrace technology solutions such as AML software platforms that automate repetitive compliance tasks—KYC checks, transaction monitoring, and regulatory reporting. Automation not only reduces the time and effort required for compliance but also minimises the risk of human error. 

For example, CCH iFirm AML + Biometric KYC allows you to automate your KYC checks by confirming who your customer is who they say they are, against 16,000 official ID types. This all happens in under 90-seconds, with none of the usual email back-and-forth accountants have to put up with. 

2. Implement risk-based approach 

Adopt a risk-based approach to AML compliance, focusing resources and efforts on high-risk customers and transactions. By prioritising resources where they are most needed, you can optimise your compliance efforts to reduce unnecessary costs. 

3. Continuous monitoring 

Implement robust systems for continuous monitoring of customer transactions and behaviour patterns. This helps detect suspicious activities in real-time, enabling prompt action to mitigate risks and prevent financial crimes—ultimately streamlining your efforts. 

Monitoring methods might include:  

  • Transaction screenings 
  • Audit and review processes 
  • Continuous training for employees 
  • Customer due diligence reviews 
  • Threshold monitoring  

4. Outsource functions 

Consider outsourcing AML compliance functions, such as customer onboarding and KYC checks, to specialised service providers. This allows you to focus on your core business activities while ensuring compliance with regulatory requirements. 

CCH iFirm AML + Biometric KYC uses thousands of instant checks for liveness, facial structure and lighting, to identify your customers. It also compensates for age and facial hair changes – guaranteeing that the person being verified is a real human being and they are who they say they are. By outsourcing your KYC checks to a specialised solution provider, such as Wolters Kluwer, you reduce the risk of error while freeing up your own time to focus on other elements of your practice.  

You have the foundations of easing your AML and KYC burdens, so it’s now onto how you can turn compliance into opportunities.  

3 ways you can turn compliance into revenue streams 

1. Value-added services and cross-selling opportunities 

Offer value-added AML compliance services to clients, such as AML training and advisory. By positioning yourself as trusted advisors in AML compliance, you can attract new clients and generate additional revenue streams.  

Use AML compliance as a gateway to cross-sell other products and services across your offering. This might include audit, tax, and consulting services.  

2. Data analytics and insights 

Leverage data analytics tools to gain insights into customer behaviour. By analysing customer transaction data, accountants can uncover patterns and trends that can be used to tailor personalised financial solutions for clients.  

Opportunities to leverage data may include: 

  • Predictive analytics for risk assessment 
  • Fraud detection and prevention 
  • Segmentation and profiling for tailored solutions 
  • Customer lifetime value analytics to identify future opportunities  
  • Performance measurement and optimisation to finetune your offering  

3. Compliance as a competitive advantage 

Position robust AML compliance measures as a competitive advantage in the marketplace. Highlighting strong compliance capabilities can differentiate accountants from competitors and attract clients who prioritise regulatory compliance and risk management. 

For example, by automating your AML and KYC checks, you’re freeing up more time to focus on your clients, whilst adhering to strict regulations—this gives you both credibility and a competitive edge. 

Interested in learning more about how you can automate your compliance checks and turn them opportunities? 

Read more.