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Outsourcing KYC/AML services. How to do it properly?


Some fields pose more challenges than others when it comes to outsourcing. KYC (Know Your Customer) and AML (Anti Money Laundering) are two such services.

However, that’s not to say that outsourcing KYC and AML services are impossible.

On the contrary, money and crypto companies can benefit from outsourced services. The key here is to do it right.

Therefore, today we’ll review some of the core factors to keep in mind when outsourcing KYC/AML services.

Initial steps – where to start?

To make KYC/AML service outsourcing a success, companies have to start on the right track.

In the beginning, the following factors can determine how successful outsourcing money and crypto could become:

  1. Set up a clear and structured assessment process. That would include employees’ competence and track record based on defined criteria.
  2. Drafting an informative and accurate outsourcing agreement between the company and the KYC/AML outsourcing provider. In the contract, responsibilities and accountabilities should be defined as clearly as possible.
  3. Getting the agreement approved by the Senior Management team. Only then a collaboration between money and an outsourcing company can begin in practice.

Ensuring a smooth process through regular checkups

For KYC/AML outsourcing to function properly, control is needed.

For that, regular reporting is a must.

First, it has to be ensured within the outsourcing team (e.g., AML officers could have regular meetings with their Managers to track the process and make the necessary adjustments).

Secondly, monthly or quarterly meetings with the whole team are encouraged to see where the workflow is going.

Setting up a control system is the quickest way to track the progress and make the needed changes for a collaboration to be a success.

Why should money and crypto companies outsource KYC/AML services?

Outsourcing can bring endless benefits to companies of different sectors and sizes. When it comes to the money and crypto companies, outsourcing KYC/AML services provide the following benefits:

  1. More focus on the core business functions. Leaving AML and KYC to the outsourced professionals enables companies to invest more effort and time in their actual business and generate new ideas for further growth.
  2. High-quality services. As outsourced KYC/AML professionals dedicate their time to learn everything there is to know on the topic and put the knowledge into practice; you can be sure to receive top-quality services. That may not always be possible within the company.
  3. Cost-efficient solution. More often than not, opting for outsourced services means saving money. Naturally, that money can be further invested in new business development ideas.

Wrapping up

While outsourcing compliance KYC/AML services is riskier than many other services, the benefits are outstanding.

To do that right, make sure you find trustworthy outsourcing professionals who will be able to offer top-quality services, smooth communication along the way, and rapid learning.

A successful collaboration with an outsourcing provider will save time and money for your money or crypto company and leave more space to generate new business growth ideas.