Navigating consumer protection, regulatory and financial crime risk
Consumer finance businesses play an important role in providing individuals with access to credit and financial products. The sector continues to evolve through digital lending, embedded finance and new consumer credit models, while regulatory expectations around customer protection, fair value, affordability and responsible lending continue to increase.
Kharis & Knoble supports consumer finance businesses in navigating these evolving requirements, helping them manage regulatory, governance, compliance and financial crime risks while building effective and proportionate frameworks that support both customer outcomes and sustainable growth.
Consumer credit Lending Buy Now Pay Later Digital lending Consumer finance platforms
Consumer finance businesses face a range of regulatory, operational and financial crime risks. The increasing use of digital channels, automated decision-making and instant payments can create additional complexity, particularly around customer onboarding, affordability, identity, fraud and the movement of funds. Financial crime risks can include:
Money laundering, including through unusual repayments, lump sum payments and early settlement of credit
Fraud, including identity fraud, application fraud, account takeover and payment fraud
Terrorist financing, including risks arising from third party payments and misuse of consumer finance products
Sanctions risk, particularly where customers, payments or counterparties have international connections
Financial crime through digital channels, where speed, scale and technology can make suspicious activity more difficult to identify
Effective risk management therefore requires firms to understand both their customer and product risk, while ensuring that financial crime controls operate alongside wider regulatory and consumer protection obligations.
Kharis & Knoble supports consumer finance businesses to assess, strengthen and transform their financial crime, compliance, risk and governance frameworks.
We help firms identify weaknesses in their existing frameworks, systems and controls and implement practical enhancements to address regulatory expectations, emerging risks and changing business models.
Our experience includes supporting businesses through independent assessments, regulatory scrutiny, remediation and transformation programmes, as well as helping firms strengthen their KYC, financial crime controls and wider compliance capabilities.
We also support new and growing businesses as they develop their operating models and prepare for regulatory authorisation or expansion.
Our Approach
We understand that every consumer finance business has a different product offering, customer base, distribution model, technology environment and risk appetite. We therefore work closely with our clients to understand their business and develop an effective, proportionate and risk-based approach to managing regulatory, compliance and financial crime risk. Our approach helps deliver:
We help firms identify and assess the financial crime risks arising from their products, customers, channels and operating models, enabling them to implement controls that are proportionate to their risk exposure.
We help clients understand and meet their regulatory obligations, strengthen governance and controls, and establish robust documentation and evidence to support regulatory assurance.
We support firms in strengthening customer due diligence, customer risk assessment, ongoing monitoring and remediation while ensuring that processes remain practical and proportionate.
We help businesses strengthen their ability to prevent, detect and respond to fraud and other financial crime threats across increasingly digital and automated customer journeys.
We help firms use technology, data and AI to enhance compliance and financial crime capabilities, while maintaining appropriate governance, oversight, human judgement and regulatory assurance.
We work with clients to strengthen their compliance and financial crime operating models, embedding sustainable improvements that support regulatory expectations, customer outcomes and long-term business objectives.
Our services support the full spectrum of consumer finance risk, compliance, financial crime and governance needs. We can assist with:
Financial crime risk assessments AML and sanctions frameworks Fraud risk management KYC and customer risk management Transaction monitoring Regulatory remediation Independent assessments Governance and operating models Technology and data transformation AI assurance Regulatory authorisation Compliance transformation
Whether strengthening an existing framework, responding to regulatory scrutiny or preparing for growth, Kharis & Knoble provides practical, proportionate and risk-based expertise to help consumer finance businesses manage complexity and operate with confidence.
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