Remediation is the process of identifying, correcting and resolving compliance issues or deficiencies within a Know Your Customer (KYC), Anti-Money Laundering (AML) or broader risk management framework. It involves taking corrective actions to bring customer files, processes or internal systems back into alignment with regulatory requirements, internal policies and industry best practices.

Remediation often refers to reviewing and updating incomplete, outdated or inaccurate customer records. This may include verifying identification documents, confirming beneficial ownership, reassessing risk levels or re-screening customers against sanctions and watchlists. Remediation projects are commonly triggered by internal audits, regulatory examinations, system migrations or changes in compliance standards.

Effective remediation helps financial institutions and regulated entities reduce exposure to financial crime, avoid regulatory penalties and maintain a strong compliance posture. It may be applied on a case-by-case basis or as part of large-scale remediation programs aimed at cleaning up legacy data or addressing systemic weaknesses.

Timely and thorough remediation is essential not only for meeting legal obligations but also for demonstrating a commitment to regulatory compliance and risk mitigation. It supports the integrity of Customer Due Diligence (CDD) processes and ensures that risk assessments and monitoring activities are based on accurate, current information.