Anti-Money Laundering (ALM) And Know Your Customer (KYC) Creating Jobs In India

Over 10000 Jobs in the next 8 months predicted for ALM & KYC process across International and Indian companies. It is a mandate from RBI and as per the mandate, the completion of the verification process is compulsory for all banks and financial institutions. Banks and financial institutions (FIs) are mandated to follow the customer identification procedure for opening of accounts and monitor transactions which are suspicious in nature for the purpose of reporting the same to an appropriate authority. KYC and ALM measures are formulated and are enforced as a process to track, monitor money laundering and finance terrorism. Customer Due diligence (CDD) for banks based on BASEL committee for bank supervision is in place with all banks.

With this as a background, all banks and financial institutions are on the lookout for ensuring the KYC and ALM process is adhered to. As the customer base for each of the banks is very high they either have their own teams to set up the Process of KYC and ALM or outsource the same to organizations which have these processes executed for their clients.

In India, it is estimated to have over 310 million bank accounts which need customer registration under KYC and CDD.

KYC policy has the key elements like – Customer acceptance policy on the terms of the bank, Customer Identification procedure, Monitoring of transitions and Risk Management, both Companies and Individuals come under the scrutiny for the processes.  

India has two aspects of addressing this massive aspect of KYC & ALM. India the land of Shared services, Backend operations worldwide KYC and ALM processes are transitioned/outsourced to India. Over the past 4 years, there have been over 13 new transitions and 40 Outsourced processes which have come to India creating employment opportunities to over 20000 Jobs. The year 2018- 19 is promising as many 10000 Jobs with over 25 organizations looking at scaling up their operations across Bangalore, Pune, Mumbai, Gurgaon, Chennai and other locations including secondary cities of India in the next 8 months.

The designations which organizations have been hiring are Jr. Analyst, Analyst, Sr. Analyst, Team Leader, Manager, AVP, VP of which about 80 % of the jobs contribute up to Team Lead level.

The salary starts from an average of 2.4 lacs of up to 9 lacs for a Team Leader average salary being 3.5 - 4 lacs based on the experience level for the lower band of the hiring process. An ALM/KYC analyst with 2 years can get of up to 5 Lacs salary in the market.

Many organizations hire Freshers for this process and deploy hire train deploy model to ensure that they cost to optimize the opportunity, on an average freshers salary start from INR.12000/- of up to INR.20000/- based on the pedigree and skills hired for. Recruitment firms have built a talent pool of candidates for ready deployment for many of the process which has a demand of 100 to 400 people to be deployed in a months’ time.

As we see a surge in India going Digital in banking and new bank accounts opened for the past 1.5 years ever since demonetization. World Bank announces India to have contributed to 55% of the new bank account opened globally with over 32 cr. Account holder under the Jan Dhan Yojana of Govt. of India initiative. The New Bank account opening has been catching up and will see an up-trend of over 30% against last year.

Globally many organizations have invested in the ALM and KYC solutions to its customers and have customized solutions offered to bring about a robust and unified process to achieve Centre of excellence.  

With India providing cost efficiency and labor supply it has become the most sort after destination for global players to set up their operations for both local and global process in KYC and ALM. The demand is growing as the need for expansions are in parallel.  

For individuals, there is a certain growth path and a career growth with a stable salary increase and better designation as they mature in experience and processes and opportunities of one to become AVP and VP gave their tenure and overall process and people orientations.

N Shivakumar

Guest Author Shivakumar is a Visionary Leader with over 2 decades of expertise in the rearing of competency center from Scratch to evolving the same to a highly profitable business unit capable of being productive and Progressive. An MBA from Symbiosis Institute of Management in HR and International Marketing Shiva has interest in Economics which was his post-graduation subjects as well.