Client
Canadian financial services firm
Industry
Financial services
Primary goal
Modernize FC technology
Technologies
FC advisory services
MAKE FC regulator-ready
Financial crimes (FC) such as money laundering, sanctions breaches, terrorist financing, and tax evasion are becoming more complex, and more costly as regulations evolve. Without updating its FC operations, a financial services firm faced serious business risks that could disrupt operations and undermine customer trust.
This case study shows how KPMG worked with the firm to modernize its FC operations by identifying and assessing risk, and creating operating models, policies, controls, and analytics aligned to risk that would meet Canadian and global standards.
Reduce
regulatory risk
Align with evolving standards
Boost operational
efficiencies
Harness data to detect suspicious activity
Accelerate
transformation
Modernize financial crime operations
Measurable
results
Reduce compliance costs and manual processes
Client transformation journey
- Before
- During
- After
Legacy FC technology increases regulatory risk
A Canadian financial services firm was challenged with updating and deploying its financial crimes technology solution and was looking for a trusted collaborator to support its FC transformation. Without modernization, the firm would increase its exposure to regulatory risk, operational inefficiencies, and undetected suspicious activity through fragmented data and weak analytics.
The firm brought on KPMG’s Financial Crimes (FC) practice, which supports organizations in strengthening their FC compliance capabilities. The initiative sat at the intersection of regulatory compliance, data analysis, and technology transformation, requiring both subject matter and technical expertise to improve the accuracy and reliability of regulatory reporting submitted to regulators.
Transforming FC regulatory reporting services
KPMG assembled a multidisciplinary team capable of delivering end-to-end support across all critical dimensions of the program, including FC regulatory and compliance advisory expertise. Drawing on a deep understanding of the firm’s operating model, governance structure, and decision-making processes, the team assessed the root causes behind previous delivery challenges and developed an approach focused on collaboration and execution.
The team then established strong working relationships across the compliance, business, and IT functions, breaking down organizational silos and improving alignment among stakeholders. They also acted as a trusted intermediary between the firm and its technology provider, fostering constructive dialogue and helping shift discussions to evidence-based decision-making. This approach improved collaboration, accelerated delivery, and created a more effective environment for problem-solving.
From there, KPMG designed and deployed a comprehensive transformation program across the firm’s FC regulatory reporting ecosystem. This included enhancement actions within both the firm’s internal data processing environment and the technology provider’s platform, including customizations tailored to the firm’s needs.
Eight key success factors contributed to the successful delivery of the program, including:
- Visible and sustained executive sponsorship
- Agile governance supported by rapid decision-making
- An experienced and highly collaborative leadership team
- Deep expertise across FC regulatory, business, and technology domains
- A strong partnership with the firm’s technology vendor
- Effective deployment of cross-functional resources
- Protection of delivery teams from external distractions and competing priorities
- A pragmatic approach to managing and mitigating delivery risks.
Strengthening compliance capabilities for the future
KPMG significantly accelerated remediation efforts, allowing the firm to achieve measurable results within a compressed timeframe. KPMG also established a rigorous and auditable framework for documenting, validating, and tracking all changes, strengthening the firm’s ability to demonstrate compliance with evolving regulations.
A key lesson was that regulatory remediation is rarely a compliance issue alone: It’s also a business, technology, data, and governance challenge. Transformation projects that combine strong leadership, cross-functional collaboration, disciplined documentation, and a focus on long-term sustainability are significantly more likely to achieve successful and lasting outcomes.
In this case, the transformation effort not only addressed immediate FC regulatory risks, but also strengthened the firm’s overall reporting and compliance capabilities for the future. As a result, other business units at the firm identified similar compliance and reporting challenges within their own operations and subsequently requested KPMG to support their remediation efforts.
How we make the difference
KPMG helps organizations prevent, detect, and respond to financial crime risk through integrated advisory, technology, and managed services. Make the difference by building a finance function that meets the latest Canadian and global regulatory expectations and prepares you for the future.
Connect with KPMG to explore how FC advisory services can unlock value across your organization.
KPMG. Make the Difference.
