Last Updated on: 4th March 2025, 01:53 pm
KYC360 has unveiled its latest industry report, “The Future of KYC Remediation: Top Priorities and Challenges in 2025.” The survey, conducted among 116 compliance professionals, underscores the ongoing challenges of KYC remediation, a process that remains complex and resource-intensive. Firms continue to grapple with outdated customer records and fragmented systems amid increasing regulatory pressure.
As regulatory expectations tighten and enforcement actions escalate, organisations are being driven to carry out large-scale remediation initiatives to ensure compliance with evolving requirements.
Key Findings from the 2025 KYC Remediation Survey:
- Manual remediation processes continue to dominate, leading to inefficiencies and heightened compliance risks.
- More than 40% of respondents anticipate an increase in remediation costs for 2025.
- A third of firms are planning to launch remediation projects within the next 12 months.
- Data quality concerns are a leading reason for remediation efforts, as firms struggle to maintain accurate and up-to-date customer records.
- Regulatory audits and mandates remain a primary trigger for large-scale remediation.
Stephen Platt, Founder & CEO of KYC360, commented on the challenges and opportunities ahead:
“KYC remediation has long been seen as a resource drain, but 2025 presents an opportunity for firms to rethink their approach. Through the right technology and processes, organisations can manage customer remediation efforts in a scalable manner. Improved data quality and increased efficiency enable firms to fully meet regulatory expectations and enhance operational resilience.”
Key Challenges for KYC Remediation in 2025
Survey results indicate that rising remediation costs remain a primary concern, driven by inefficient manual processes and increasing compliance obligations. Without automation in KYC refreshes, firms are left handling large-scale remediation projects that demand significant time and resources.
Another major challenge highlighted in the survey is customer outreach, with firms struggling to effectively communicate with clients during remediation efforts. Additionally, the need for manual data rekeying adds further strain on compliance and risk teams, contributing to inefficiencies.
For a comprehensive analysis of the key compliance challenges organisations face and a practical guide to managing remediation projects successfully, download the full KYC360 report today.
