Complying with regulations around onboarding requires the participance of many different stakeholders in the organisation like the Legal Department, Compliance teams, Onboarding teams, Procurement, IT, Risk, Reporting and more.
Coordinating the efforts of so many involved parties and streamlining their operation and procedures into one, straight-through-journey for the client is, especially in big organisations, a substantial challenge.
In addition, compliant onboarding also requires managing external providers such as identity verification service providers, background-checks providers (PEPs, Sanctions, Adverse Media, POR etc.), and providers of IT resources like cloud storage services and data security counselling firms. These further complicate the management of the process, as well as make it very hard to centralise and standardise it.
A further complication derives from the need to retain the onboarding-related data, monitor it, and re-evaluate it periodically. These regulatory requirements make onboarding, as we wrote above, a continuing, ongoing task.
Managing all this is both a logistical challenge; and can also burden the organisation with substantial costs.
Figure 3 The Organisational Logistical Cost