In global organizations, Treasury teams are stepping up to lead one of the most overlooked but business-critical functions in compliance: Responding to bank KYC requests.

While Know Your Customer (KYC) processes are often considered the domain of compliance or legal departments, Treasury is uniquely positioned to manage this responsibility: Both at the point of request and proactively in anticipation of future needs.

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The Reality of Bank KYC Requests

When a bank sends a KYC request, it’s often urgent. Treasury is usually on the front lines - managing the relationship, maintaining bank accounts and navigating onboarding or updates. These requests can involve hundreds of questions on dozens of pages, require sensitive documentation and often differ in format and requirements across jurisdictions.

Treasury teams are now realizing that owning the KYC response process leads to fewer delays, smoother relationships and stronger control over sensitive data.

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Why Treasury?

1. Direct Relationship with Banks: Treasury owns the banking relationship. They’re the first point of contact when KYC requests come in and the ones who suffer most when requests are delayed.

2. Familiarity with Entity Structures: Treasury is closely aligned with finance and legal teams and typically understands the structure of the organization, its signatories and its cash flow profiles.

3. Need for Speed: In banking, time is money. Whether it's opening a new account or updating documentation to avoid disruptions, Treasury teams are driven to resolve KYC requests quickly.

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From Reactive to Proactive: The Shift in KYC Strategy

Leading treasury teams are no longer waiting for the next request to scramble. Instead, they’re:

• Building centralized KYC data repositories for faster response.
• Storing previously approved documents and answers for reuse.
• Mapping out refresh cycles and document expirations so they're always one step ahead.

By staying ahead of KYC timelines and requirements, Treasury minimizes back-and-forth, avoids last-minute escalations, and ensures continuity in financial operations.

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Technology Is Key

Manual KYC response using archaic methods, such as tracking requests in Excel or using static PDFs, is error-prone and unsustainable at scale. Modern platforms like Avallone allow Treasury teams to:

• Automate KYC form completion using stored data
• See what’s already been answered and what’s missing
• Store and reuse responses for future requests
• Collaborate securely across compliance, legal, and tax teams

With these tools, Treasury can manage requests across banks, regions and entities without drowning in administrative work.

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A Strategic Role for Treasury

Taking ownership of KYC protects operational resilience. Banks that don’t receive timely KYC updates may freeze accounts, delay transactions or restrict services. By owning this process, Treasury ensures:

• Uninterrupted access to banking services
• Regulatory alignment across jurisdictions
• Strengthened bank relationships

In doing so, Treasury moves from reactive firefighting to proactive compliance leadership and along the way, earning greater influence at the strategic table.

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Conclusion

‍KYC is a core treasury responsibility and strategic advantage. With ownership of bank KYC responses, Treasury teams are reducing friction, increasing efficiency and strengthening organizational resilience. The key is to use the the right technology and a proactive mindset to get ahead of the risks.

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