Anti-money laundering (AML) regulations are mandated by national and international authorities worldwide, and financial institutions are subject to a wide range of screening and monitoring obligations. These AML obligations include the Know Your Customer (KYC) process, which allows businesses to identify and understand their customers’ financial behavior. Pursuing a career in AML-KYC in India provides numerous opportunities for advancement. With technological advances empowering both sides of the ‘coin of integrity,’ a plethora of opportunities in the AML-KYC process are emerging in India.
Are AML KYC positions in high demand?
There are numerous opportunities for KYC professionals to advance in the financial sector. First and foremost, you can become a Team Manager with a specific development. Alternatively, if you are interested in AML, you can transfer to the Compliance division and specialize in this field. You may also choose to specialize in credit and risk analysis. As you can see, a graduate starting as an AML KYC Analyst has a great career path and growth opportunities in this industry.
Implementation of AML-KYC
The RBI has imposed the following measures on AML and KYC, with different requirements for the verification of Customer Identification Information for individuals and legal entities:
- Full identity verification is required every two years for high-risk customers, every eight years for medium-risk customers, and every ten years for low-risk customers.
- Positive confirmation (obtaining KYC-related updates via e-mail, letter, telephonic conversation, forms, interviews, visits, etc.) is required at least every two years for medium-risk individuals and entities and at least every three years for low-risk individuals and entities.
- Account risk classification must be reviewed every six months.
Let us now look at the possible domains in which you can start working –
Career Opportunities in AML-KYC
AML-KYC is an umbrella term that refers to a variety of compliance roles. The skills required to complete these tasks successfully can vary greatly. There are also numerous job roles available in this field, a partial list of which includes:
Analyst Positions:
As an entry-level analyst, you may be responsible for research and analysis tasks related to due diligence. Some of the duties could include:
- Identification, verification, and screening of customers
- ensuring high-quality standards for KYC reviews
- Bringing suspicious transactions to the attention of senior management
Management of Risk:
Risk management roles include developing policies for implementation, monitoring, and assessing risks within an organization. You’ll do the following:
- Conduct onboarding, periodic, and trigger event reviews.
- Report suspicious transactions and activities.
- Ensure that risks are identified and effectively mitigated.
Officer of Compliance:
If you want to work in compliance, you should be prepared to do a risk assessment, project management, policy and procedure development, and so on. Among your responsibilities may be:
- Due Diligence for Customers
- Customer Transaction Monitoring
- Regulatory Compliance
- Putting Compliant Procedures in Places
Monitoring of Transactions:
With technological advancements and the emergence of new areas such as Artificial Intelligence, Automation, Machine Learning, FinTech, Cryptocurrency, and so on, these roles are about:
- Using software and techniques to monitor and report suspicious customer transactions
- In the investigative process, managing, reviewing and resolving alerts
- Maintain an up-to-date understanding of industry best practices and technologies.
A role in AML-KYC can serve as a stepping stone to many other opportunities in regulated industries, such as:
- Assisting with Risk or Compliance
- The administrator of Compliance Monitoring
- Manager of Client Onboarding
- Officer of Credit Risk
- Governance Groups
Hence, working in these domains along with the top paying companies like KPMG, EY, State Street, Bank of America, Credit Suisse, Deutsche Bank, J.P. Morgan, BNP Paribas, NatWest Group, Morgan Stanley, CRISIL Limited, TCS, Genpact, IBM, IDFC FIRST Bank, Barclays, Delta Capita, DBS Bank shows that these jobs are definitely in high demand.
Salary and Job Opportunities
All work and low pay turn even the best career opportunities into bleak prospects for advancement. So, does a career in AML-KYC pay well in India? AML-KYC Analyst Salaries in India can range from 2.5 to 8.4 lacs per year, including cash bonuses, commission, tips, and profit-sharing, with the national average salary hovering around 4 lacs.
Compliance Analysts are paid anywhere from 3 lacs to 10 lacs per year, with the national average salary being around 6 lacs. Compliance Officers can expect to earn up to 3.2 lacs per year, with the national average being around 6.7 lacs. The salary trajectory of Compliance Officers begins at 6 lacs per year for 2 to 4 years of experience and can progress to a Lead Compliance Officer role, which can earn up to 17 lacs per year.
Let us now look at the Vskills AML KYC Certification course that can help you to become a high earning professional in this field –
Certified AML-KYC Compliance Officer
This Vskills certification aims to improve the quality of compliance with RBI directives in combating illegal operations and the movement of funds through banking channels. KYC and anti-money laundering operations have grown in importance due to the security risk they pose to the country, as well as to maintain the financial health of the institutions. A growing number of working professionals in the banking and finance fields are obtaining KYC and anti-money laundering certifications. Students who want to work in the banking and finance industry will find this certification useful.
Final Words
Because money laundering is a continuous phenomenon and new complexities emerge on a regular basis in a dynamic market, anyone charged with preventing it must stay current. Because the road to success is always being built, focusing on the right mix of skills, qualifications, and attitude can help you make significant strides in this career path.
