What Does a KYC Analyst Do?

KYC stands for “know your customer,” and it refers to the process of identifying and verifying the identity of a client or customer. KYC analysts work with banks, credit unions, insurance companies, and other financial institutions to ensure that all clients are legitimate and that they meet certain criteria (such as income level, net worth, etc.).

KYC Analyst Job Duties

KYC analysts have a wide range of responsibilities, which can include:

• Maintaining records of customer identification information, including name, address, date of birth, social security number, place of birth, mother’s maiden name, and any other identifying information
• Reviewing applications for loans or credit accounts to ensure that all required information has been submitted and that all forms are filled out accurately
• Obtaining information from clients through in-person interviews or via written questionnaires
• Contacting clients to follow up on missing information or incomplete applications
• Reviewing financial statements and other records to verify the accuracy of information provided by customers
• Requesting additional information from clients if needed to determine eligibility or to complete an application
• Reviewing information provided by other parties involved in a transaction such as employers, banks, or landlords to determine whether they meet the requirements of federal regulations
• Processing loan applications by collecting documentation such as tax returns and utility bills that support a borrower’s ability to repay debt
• Contacting companies to request additional information on behalf of lenders

KYC Analyst Salary & Outlook

KYC analyst salaries vary depending on their level of education, years of experience, and the size and industry of the company. They may also earn additional compensation in the form of bonuses.

• Median Annual Salary: $72,500 ($34.86/hour)
• Top 10% Annual Salary: $115,000 ($55.29/hour)

The employment of KYC analysts is expected to grow faster than average over the next decade.

Demand for KYC analysts will be driven by the need for financial institutions to comply with regulations, such as the Bank Secrecy Act and the USA PATRIOT Act. In addition, the increasing use of mobile banking and online banking services will increase demand for KYC analysts.

Related: KYC Analyst Interview Questions and Answers

KYC Analyst Job Requirements

KYC analysts are required to have the following qualifications:

Education: Most employers require an associate or bachelor’s degree for a KYC analyst position. Some employers prefer a related degree, such as finance, accounting or business. Other employers may accept a related associate degree.

Some employers may also require a candidate to have a minimum of two years of experience in a financial or accounting role.

Training & Experience: A KYC analyst gains training through a combination of formal education and on-the-job experience. Analysts often have an internship while in school to gain work experience. Those who pursue a career in finance or accounting can also receive training while working in the field. On-the-job training for a KYC analyst will vary depending on the employer, but it will often include instruction in the company’s policies and procedures and the software they use.

Certifications & Licenses: While there is no specific certification needed to become a KYC analyst, those looking to advance their career and compete for more senior positions can earn a professional certification.

KYC Analyst Skills

KYC analysts need the following skills in order to be successful:

Communication: Communication is another skill that can help a KYC analyst succeed in their job. They often communicate with other members of a company’s staff, including those in other departments. They also communicate with customers and clients, explaining the company’s policies and procedures.

Attention to detail: Because KYC analysts work with sensitive information, it’s important for them to pay close attention to detail. They need to ensure they have all the information they need to verify a customer’s identity and that they have the correct information for the customer. They also need to ensure they have the correct information for the customer’s transactions. This includes ensuring they have the correct spelling of names, addresses and other information.

Knowledge of regulatory requirements: KYC analysts work in finance and compliance departments, so they need to understand the regulations their company follows. This includes knowing what information the company needs to collect from customers and what information the company can’t collect. It also includes knowing what information the company needs to keep and what information the company can dispose of.

Ability to work in a team environment: KYC analysts often work in teams with other financial professionals. They may work with compliance officers, financial analysts and other KYC analysts to ensure that the company has all the information it needs to verify a customer’s identity. Working in a team environment can help KYC analysts develop their interpersonal skills and learn how to communicate effectively with others.

Computer skills: Computer skills are essential for any role in finance, as most companies use computer systems to manage their operations. Your computer skills can include knowledge of software programs, such as Excel, that help you analyze data and create reports.

KYC Analyst Work Environment

KYC analysts work in the financial industry in banks, credit unions, and other financial institutions. They typically work in an office environment during regular business hours, although they may occasionally need to work overtime or on weekends to meet deadlines. The work can be stressful, as analysts must pay close attention to detail and meet deadlines for completing reports. However, analysts find the work to be interesting and challenging, and they feel that they are making a direct and positive impact on the financial industry.

KYC Analyst Trends

Here are three trends influencing how KYC analysts work. KYC analysts will need to stay up-to-date on these developments to keep their skills relevant and maintain a competitive advantage in the workplace.

The Need for Better Customer Experience

The need for better customer experience is a trend that is being driven by the increasing competition in the marketplace. Companies are now realizing that they need to provide a better customer experience in order to stay competitive, and this is where KYC analysts come in.

KYC analysts can help companies to improve their customer experience by ensuring that all of their data is accurate and up to date. This includes things like verifying customer information, collecting feedback, and monitoring customer interactions.

More Focus on Cybersecurity

As businesses become more reliant on technology, the need for cybersecurity professionals will continue to grow.

KYC analysts are in a unique position to take advantage of this trend, as they are responsible for collecting and analyzing personal information about customers. By understanding how to protect this information, KYC analysts can help businesses to avoid becoming victims of cyberattacks.

Greater Regulatory Oversight

Regulatory oversight is becoming increasingly important for financial institutions as regulators look for ways to ensure that banks are following the rules.

As a KYC analyst, you will be responsible for ensuring that banks are complying with regulations by reviewing customer records and making sure that all necessary information is collected. In order to be successful in this field, you will need to have a strong understanding of the latest regulations and how they apply to banking.

How to Become a KYC Analyst

A career as an KYC Analyst can be very rewarding. It offers the opportunity to work in a variety of industries and with different types of customers. You’ll also have the chance to develop your skills and knowledge in areas such as risk management, compliance, and data analytics.

To get started on this path, you should first make sure that you have the necessary qualifications and experience. This could include having a degree in finance or accounting, or having worked in a related role. You should also have strong analytical skills and be able to think critically about complex problems.

Once you have the right qualifications and experience, you can start looking for jobs in KYC Analysts. You can find these jobs online or in local newspapers and magazines.

Advancement Prospects

A KYC Analyst can advance their career by taking on additional responsibilities within their organization, such as training new hires or taking on a supervisory role. They may also advance their career by pursuing further education in related fields, such as compliance or risk management. With experience and additional education, a KYC Analyst may eventually become a KYC Manager or a compliance officer.

KYC Analyst Job Description Example

[CompanyX] is a leading provider of compliance and risk management solutions. We are looking for a KYC Analyst to join our team. The ideal candidate will have experience in customer due diligence, KYC/AML compliance, and/or risk management. They will be responsible for conducting customer risk assessments, preparing KYC/AML documentation, and conducting customer due diligence. The KYC Analyst will work closely with the compliance team to ensure that all customers are properly screened and that all risks are mitigated.

Duties & Responsibilities

• Understand and comply with all applicable laws, regulations, policies, and procedures related to anti-money laundering (AML) and countering the financing of terrorism (CFT), including Bank Secrecy Act (BSA), Office of Foreign Assets Control (OFAC), and Customer Identification Program (CIP)
• Perform customer risk assessments by reviewing account documentation and identifying potential risks associated with customers, transactions, and products
• Analyze large data sets to identify trends, relationships, and patterns that may be indicative of financial crime
• Prepare Suspicious Activity Reports (SARs) for filing with FinCEN in accordance with BSA/AML regulations
• Conduct enhanced due diligence (EDD) on high-risk customers and transactions in accordance with internal policies and procedures
• Maintain up-to-date knowledge of AML/CFT compliance requirements and industry best practices
• Assist in the development and implementation of training programs for bank staff on AML/CFT compliance topics
• Participate in AML/CFT-related audits and examinations conducted by regulators and internal audit
• Keep abreast of new technologies that can be used to detect and prevent financial crime
• Collaborate with other members of the compliance team to develop and implement effective compliance strategies
• Perform other duties as assigned
• Adhere to department policies and procedures

Required Skills and Qualifications

• Bachelor’s degree in business, finance, accounting, or related field
• 2-3 years professional experience in banking, compliance, or a related field
• Strong understanding of KYC/AML regulations
• Excellent research skills
• Proficient in Microsoft Office, with aptitude to learn new software and systems
• Detail-oriented with strong organizational skills

Preferred Skills and Qualifications

• Master’s degree in business, finance, accounting, or related field
• Professional certification, such as CAMS, CFE, or CIA
• Experience working with KYC/AML software programs, including World-Check, Thomson Reuters, and LexisNexis
• Fluency in more than one language