Which KYC-related finding poses the most risk to the organization?

Which KYC-related finding poses the most risk to the organization?
A . KYC requirements being considered a low priority not designed into business processes and implemented after product launch
B . Sanctions fists that are updated on a periodic basis following an annual risk assessment
C . KYC processes not being integrated into the business and associated application systems
D . Backlogs and delays in maintaining client files in accordance with the organization’s policy

Answer: A

Explanation:

KYC integration is fundamental to ensuring that anti-money laundering controls are effective from the outset of client onboarding. Delayed implementation of KYC increases the risk of onboarding high-risk customers without adequate due diligence.

Advanced CAMS-Audit documentation stresses the importance of embedding KYC into business processes during product design and rollout phases to mitigate risks.

Neglecting this requirement can expose the organization to severe regulatory penalties and reputational damage.