Ondato Customer Lifecycle Monitoring prevents accidental non-compliance over the customer lifecycle

Ondato launched Customer Lifecycle Monitoring, a product that will address the challenge of remaining compliant over customer lifecycles measured in years.

Constant vigilance about customers’ changing status is a legal requirement in many jurisdictions. However, while most organizations understand the risks associated with onboarding new customers, they are less likely to maintain the same level of watchfulness as customer relationships develop.

Maintaining accurate compliance over customer lifecycles measured in years is much more challenging than a point-in-time check at the time of sign up. The status of customers who passed onboarding successfully can — and often does — change, perhaps years later. Failing to detect these status changes, such as appearances on sanctions or politically-exposed persons lists, can expose business to large fines, substantial reputation damage and possible revocation of operating licenses. Without ongoing monitoring, financial institutions and other businesses affected by AML and KYC regulations may be unknowingly allowing money laundering or other financial crimes.

Ondato’s new monitoring service prevents accidental non-compliance over the customer lifecycle by cross-checking customer lists against new additions to financial authorities’ registers of people who may require additional checks or even exclusion from services. Customer lifecycle monitoring can be toggled on for onboarded customers, with options to choose one or several compliance authority registries and whether any changes occur in any of them at set time intervals.

Liudas Kanapienis, CEO and co-founder of Ondato, says: “Most businesses tend to focus their compliance efforts at the time of onboarding but our experience suggests the biggest challenges come later, after customers have been onboard for a while. For organizations with thousands of customers, as the years go by a few customers will inevitably appear on lists that require a change of status by the service provider. Getting this wrong can have grim consequences. Ondato’s new service removes this risk and provides our customers with even greater peace of mind.”