The client, their challenge
Our client is a global private credit and equity firm with circa $500 billion in assets under management (AUM) that was embarking on a firm-wide initiative to digitize and improve its anti-money laundering and know-your-client (AML/KYC) and transactional due diligence processes – including identification of cost reduction opportunities. To this end, the firm sought to partner with an outsourced investor services provider with both AML/KYC and transactions review expertise to support its existing compliance team as the business was experiencing tremendous growth.
Our solution
We began by providing two IQ-EQ dedicated resources (manager level and in-house lawyer) to perform the AML/KYC and transactions reviews for the client. We then:
- Expanded our services outside of the U.S. to other jurisdictions in order to accommodate the need to perform additional AML/KYC and transactions reviews
- Introduced our MaxComplyTM platform to document and house the procedures followed for each review, both KYC and transactions reviews
- Worked in partnership with the client to customize a specific protocol to satisfy the client’s internal due diligence requirements
- Developed screening techniques and adverse media checks within MaxComply to provide the client with ongoing monitoring capabilities
- Created an internal dashboard for the client as well as an external dashboard for investors (or their representatives) to easily assess current status
- Instituted several levels of governance (including a monthly steering committee) to monitor and continue improving the process, and to enable the client to take advantage of the ability to scale resources quickly as their business expands.
The results
- Established smoother onboarding process for new and existing fund investors
- Conducted hundreds of timely investor reviews across dozens of large fund closes, often to tight timelines
- Made efficiency gains through our transactions review protocols, allowing deal teams to secure approvals on potential investors in a more formalized and expedited workflow
- Enabled improved tracking of investors and transactions for future reference in the event of additional subscriptions and/or KYC refresh
- Risk rated investors using multiple criteria, enabling a truly risk-based client AML/KYC program.
