Perpetual KYC
Perpetual KYC refers to the process of continuously monitoring and reviewing client information and transactional behavior to identify changes in their risk profile and ensure KYC information remains current and accurate throughout the client lifecycle.
Ongoing Due Diligence, continuous KYC
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pKYC
Examples
A person opens a bank account. They do not appear on any watchlists and are assigned a low-to-medium risk profile. However, the bank’s perpetual KYC system keeps automatically screening their profile against new watchlists. After a year, the client becomes a public official and shows up on a PEP list.
The perpetual KYC software therefore creates a case highlighting the change. After review, the person is reassigned a high risk profile due to their new status as a PEP.
FAQ
How does perpetual KYC differ from traditional periodic reviews?
Perpetual KYC continuously monitors for changes to client risk profiles in real-time rather than only at set review dates.
What are the benefits of continuous KYC monitoring?
Continuous monitoring can promptly identify risk changes, reduce manual refresh work, and provide an always up-to-date client view.
How can technology enable perpetual KYC?
Automated data flows, transaction monitoring, and dynamic risk assessment tools are key to enabling continuous KYC.
