Financial crime has evolved and so have the rules designed to combat it. Yet many institutions still rely on outdated processes to fight that fight.
This is according to Hawken McEwan, Director of Risk and Compliance at nCino KYC Africa, who warns: “In a world where financial crime is increasingly complex and digital, the first step you take with a client matters more than ever. Onboarding can be either your strongest line of defence or your greatest weakness. This is why KYC must evolve.”
McEwan says too many 'accountable institutions' that operate under the Financial Intelligence Centre Act (FICA) are attempting to fight 2026 threats with what feels like 2016 processes.
“FICA requires institutions to undertake due diligence to identify and verify that a client is who they say they are before conducting business with them. Its purpose is ultimately to stop criminals from using the financial system for money laundering, terrorist-related financing, tax evasion or other illicit activity. At its core, FICA onboarding is about establishing the identity of clients to ensure that accountable institutions only engage with legitimate individuals or entities,” McEwan says.
The outdated FICA process challenge
“We regularly hear from businesses that are still relying on manual FICA checks for their customers. This is especially common in the law firm space, where a paper-based approach is still often seen as the norm. But outdated processes create numerous challenges – they are time-consuming, error-prone and increase risk,” McEwan says. “Getting clients to submit their documents remains as much of a challenge as ever. When they eventually do comply, what lands in your inbox is often a faded copy of the green bar coded ID book and a proof of address that may not have been current for some time.”
McEwan notes that traditional document-based checks were designed for a world where a fraudster had to physically forge a piece of paper. Today, convincing fake IDs are generated in minutes. Manual sighted document checks simply cannot keep pace.
“The reality is that institutions can no longer afford to manually manage their FICA processes. Preventing and identifying financial crime is no longer something that can be managed with spreadsheets, paper files and good intentions. The volume of regulatory requirements, the pace of enforcement and the complexity of cyber crime means managing client risk profiles demand a more sophisticated approach. This is where purpose-built technology becomes not just useful, but essential,” McEwan emphasises.
Modernising KYC
“As criminals grow more sophisticated, businesses must stay vigilant. Businesses cannot afford to use manual checks or outdated technology as criminals are constantly looking to use the latest technology to impersonate and create targeted attacks,” McEwan says. “Digital biometric identity verification, real-time PEP and sanctions watchlist screening, and automated document checks are some of the ways institutions use technology to fight back against these attacks.”
Biometric authentication is a sophisticated security process that transforms how businesses verify identity by using unique characteristics to confirm who someone really is.
The system does not accept an uploaded selfie. It takes a live photo at the moment and matches it against the photo held at Home Affairs and the photo on the identity document. This three-way verification confirms identity with a level of accuracy the human eye cannot match.
McEwan says: “Digital biometric authentication and verification technology should be a non-negotiable in any business's onboarding process.” Instead of relying on a document that can be faked, the software uses a secure process to confirm that the person undergoing verification is alive, and that the selfie captured matches both their identity documentation and the record held by Home Affairs.
This paperless FICA approach removes manual verification bottlenecks entirely, McEwan notes. It’s easier for teams, as automated verification saves time and reduces risk; and it protects the business by ensuring compliance standards are met consistently. It can save hours per client, reducing onboarding time down to just minutes, depending on the complexity of the case. It's also easier on customers, with quicker, seamless onboarding and no back-and-forth.
McEwan explains: “It's not about cutting corners. It is about using better technology to meet the same or higher standards, in less time, with less friction. It protects your business and it makes compliance easier for your clients, as well as giving your team back the hours spent chasing outdated documents.”
Mitigating risk and modernising KYC with nCino
nCino offers seamless KYC onboarding, real-time watchlist and adverse media screening, document collection and analysis, automated client risk rating and review, bank account verification, biometric liveness and facial identity verification – all built specifically for South African accountable institutions.
McEwan says while most KYC providers focus only on software or services, nCino KYC provides both the software and the compliance expertise to get businesses FICA compliant, without them needing to become compliance specialists.
“Our platform manages the entire onboarding life cycle, from client onboarding and identity verification to sanctions screening, risk scoring and ongoing monitoring. And our compliance team is on hand to assist with FICA-related questions, tricky scenarios and the guidance you need to stay on the right side of the law,” McEwan says.
Local nCino customers are achieving measurable improvements using nCino KYC, McEwan says, with the solution being trusted by hundreds of law firms, estate agents, financial institutions, high-value goods dealers and other discerning businesses.
Hawken McEwan has over 25 years' experience in financial crime compliance, regulatory operations, risk and change. Specialising in FICA and anti-money laundering, McEwan holds a Master's from the Edinburgh University, the AMLCPrac(SA) designation, and is a certified anti-money laundering specialist, member of the Association of International Financial Crime Investigators and South African board member for ACAMs.
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