Trust is vital to the long-term success of every financial or consulting company. Its loss can have significant consequences. One recent example of this is the news that, at the end of March 2021, KPMG in South Africa became the nation’s first major auditor to stop offering consulting services to clients on the Johannesburg Stock Exchange (JSE). The change, which applies to 28 of KPMG’s clients listed on the JSE, is aimed at rebuilding confidence in the firm’s operations.

KPMG SA’s reputation and revenues were damaged in 2017 after it provided services to high profile families accused of looting the treasury of the South African government. The company’s name was further harmed when it published a misleading report on South Africa’s revenue service. Added to this is the fact that South African regulators are striving to break up the oligopoly of the country’s top auditing firms.

While KPMG SA has implemented many measures to address these issues over the last three years, they have failed to have an effect. A key next step in improving public perception will be to cooperate with the Independent Board of Auditors to develop an audit quality plan. However, it will take time for this to have an impact.

A decision to cease providing services in this way is a significant one for any business. The news highlights the importance of maintaining reputation and trust through effective compliance procedures and key processes such as Know Your Customer (KYC).

As a trusted partner in KYC profile preparation for African companies, Banks for Institutions (BFI), the sister company of Pay Compliance, can help with due diligence processes and KYC profiles for any financial company for onboarding purposes. BFI has significant experience in conducting due diligence processes and compliance investigations for African Banks’ on-boarding for correspondent banking relationships.