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  • Flexi Group

Stay on top of your KYC obligations to prevent money laundering.

Updated: Feb 8

Money laundering is a global problem that impacts all nations and may contribute to terrorism financing. Although it can be challenging to evaluate, money laundering, it is unquestionably important. According to estimates from the United Nations Office on Drugs and Crime (UNODC), between 2% and 5% of the world's GDP, or between €715 billion and €1.87 trillion annually, is estimated to be laundered each year.

The first line of defence against money laundering is the gatekeepers of the financial system, such as financial service providers and governmental organizations. An efficient anti-money laundering (AML) system is essential for businesses working in that sector, but outsourcing can be a practical and wise choice to minimize risk.

Regulated entities are mandated to conduct KYC checks (in the majority of jurisdictions) on individuals and legal entities. Local and international rules across most countries in the world create specific requirements for regulated entities to carry out KYC checks and have in place AML systems for due diligence purposes.

A KYC/AML procedure has the overall benefit of identifying criminals who would use services and/or products offered by regulated services as a means of money laundering, hence reducing the likelihood that these bad actors will be connected to the regulated entities. Most, if not all, regulated firms in the market have a KYC/AML program of some kind, whether it be in-house or outsourced, and despite the fact that it might not be required in all countries, the current global environment at the very list expects it.

According to our observations, more and more regulated companies are seeking for third parties to help with investor KYC checks. This trend has emerged for a number of reasons, including internal governance guidelines, demands from other regulated firms, and demands from jurisdiction and watchdogs alike.

Recent sanctions placed by the USA, UK, Europe, Cayman Islands, and other countries have made regulated industries even more difficult to manoeuvre. In order to identify risks beforehand, regulated entities must ensure that their clients are checked against databases that are updated every day.

Flexi Group has systems in place to screen sanctions, conduct extensive negative media research, check for heightened-risk individuals or organizations like state-owned enterprises, detect links to organized crime, and clean investor data against PEP lists. These systems serve as an early warning system for hidden risk. At onboarding, we conduct KYC checks or at any point of time after that. Any type of individual, company and/or investment structure is subject to our examinations.

Next-level screening and compliance security, supporting evidence, and risk-based operational monitoring to meet regulatory requirements in every location are some of the advantages of digital governance for Flexi Group's client experience.

Contact us.

KYC services are provided by teams of skilled professionals and can be customized to your company's needs.

Our customer-centric strategy places a significant emphasis on process orchestration, business-wide automation, and the delivery of next-generation services with the goal of internalizing software possibilities. Our experts actively investigate, put into practice, and maintain our software solutions' level of digital maturity, promoting digital transformation in this industry.

With the use of a KYC/AML program and worldwide batch CDD screening, we hope to reduce the effort involved in onboarding, shorten lead times, and lower the risk of error. Standardization and best practice methodology speed up implementation, increase productivity, and let us clearly explain our KYC strategy to clients and their investors. Establishing solid connections early on ensures complete transparency and predictability.

Contact us today if you believe you may be exposed to compliance risk or if you require assistance with client KYC.

*DISCLAIMER: This article and its publication are intended to provide a brief introduction and act as a general guide. This is provided for information purposes only and cannot be utilized as a substitute for professional advice. This document does not represent a legal opinion and one must not rely on it without receiving independent advice based on the particular facts of its own case. No responsibility is accepted by the author or the publishers for any loss suffered from acting or refraining from acting based on the contents of this publication.

We are a team of experienced professionals, all sharing a unique drive for learning and development through teamwork. The Group utilizes its various core activities to implement customized solutions for its clients. Our collective experience spans the areas of Global Corporate & Fiduciary Services, Assurance & Advisory Services, Fund Administration, Tax Advisory, Corporate Governance, Financial Services, Private Wealth Services and Compliance.

Start a conversation with us today to find out how you can benefit from a relationship with Flexi Group.

Please get in contact with our Head of Business Development:

Mrs Daniella May / Head of Business Development

Tel.: + 357 7000 2 5555 / + 357 22 87 57 55

We also organize calls using Skype. Our flexi Skype ID is

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