Data Sheet IRIS-KYC An On-boarding and Client Interaction solution Email: info@extended-content.com Phone: +44 (0)1483 688030 40 Occam Road Guildford Surrey GU2 7YG
Solution Summary Bringing new clients on-board faster generates revenue and profits sooner. A professional and efficient onboarding process also sets the tone of relationship with the client going forward. Know Your Customer (KYC) is the due diligence regulation that financial institutions must follow to identify customers and obtain relevant information to do financial business with them, as part of their Anti Money Laundering (AML) strategy. The requirements include recording and retaining specific documentation such as account applications, customer identification records, account operating agreements and large transaction records. In most financial services organisations the process of on-boarding a new client is often manual, paper driven and involves inter-departmental activity. Extended Content Solutions (ECS) is familiar with these challenges and has created IRIS-KYC solution to assist securities firms to reduce time to on-board a client by up to 80%, eliminate paper and remove manual steps to improve the efficiency of staff leading to an improved engagement experience for the client on its first interaction with the firm. IRIS-KYC solution is designed with flexibility to meet an organisation s business activities and integrate with core banking systems whilst meeting stringent compliance regulations. IRIS-KYC can be integrated into an organisation s core systems or sit alongside existing financial applications for batch processing of documents and data. The solution offers: Mail Room management & correspondence tracking Document Capture and processing (mandate/application forms etc.) Application Forms KYC & AML checks (Document verification, Politically Exposed Persons checks etc.) Workflow, Tasks, checklists, triggered alerts for compliance checking Client Services Scanning Supporting documentation Client profile Signature checking CRM Periodic client reviews Risk-based client profiling IRIS - KYC Risk assessment Dispatch of documents and forms Reports Central database Reports Fully transparent and auditable onboarding and client interaction processes AML/KYC Data verification system Integration with backend systems (CRM, Account opening etc.) Secure web-based multi-office access IRIS-KYC is designed for: On-boarding new clients Maintain on-going relationship o Periodic review 3
o Event-driven review (significant change in business or behaviour) Backlog processing (one-off review of existing relations) 4
Solution Details Documents Many KYC solutions focus on the regulation checklists and individual identification side of compliance. These solution offerings rarely offer management or control over the documents that KYC compliance generates. IRIS-KYC aims to tackle the document and data management challenge together in one solution. By handling the KYC tasks alongside the supporting documentation from clients, IRIS-KYC provides a comprehensive solution for companies to de-risk their customer engagement and meet AML regulations. Figure 1 shows details of an organisation in IRIS-KYC. The organisation has cleared KYC checks and its status is indicated by IRIS-KYC s traffic light status method showing a green status at the top of the screen. Details of the organisation checks can be viewed below with the supporting document outlined in the blue box. The icon shows a document is linked to one of the required documents, Letter of Authenticity. By clicking on the document icon, the scan appears in a new window, shown in Figure 2. This enables fast and reliable proof for financial institutions to verify KYC checking. By providing an electronic copy linked into the KYC system, the financial organisation can store and share this information securely and instantly across multiple branches through a web-browser. Figure 1 - Supporting document link Figure 2 - Supporting document view 5
Scanning The scanning function streamlines data entry and forms processing. Recognition capabilities streamline key-from-image process. Barcodes can be used and optical character recognition (OCR) to automatically populate document data for indexing purposes. Scan all KYC documents and regulatory documentation and store against the client. Scan in application forms, with automatic data recognition classifying documents is simplified. The related data is easily viewable to the side of the scanned document for any additional data entry or cross checking. Below the document IRIS-KYC provides a listing of recent activity and any associated notes. Figure 3 Scanned document view Client Information To record due diligence efforts against a customer, IRIS-KYC manages information at three levels: individual, organisation and relations between individuals and organisations. A customer can have unlimited associated beneficiaries; each organisation, individual and relation carries its own list of documents, stored information and an easily identifiable traffic light status indicator is used on all three levels to instantly show KYC position. IRIS-KYC integrates with Customer Identification solutions to provide a seamless process for the client take-on process. A form is provided to capture all information and then checks against a Customer Identification system to ensure AML checks have been performed. In situations where a customer s identity is not required, management can override the checking process at any of the three levels if required. On any of the client information screens there is an option to drill further down into details to see the audit history, supporting documents or client information. 6
Figure 4 Failed individual check using integrated Customer Identification system Figure 5 Successful individual check using integrated Customer Identification system 7
Figure 6 Adding a new person Figure 7 shows all three customer level statuses. The top green indicator shows the individual has passed KYC checks. The bottom of the figure shows three of the organisations she has a relationship with. Each organisation on the far right has its own KYC check status indicated using the traffic light status method. Additionally, each role the individual has in respective organisation also carries a KYC check with traffic light indicators shown on the ticks. In the example shown, Mrs Tara Marchant as an individual passes KYC regulations as does the organisation, The Centre. But only one of her roles at The Centre has been successfully verified. The green tick provides a link to the supporting verification information, shown in Figure 8. The KYC history is detailed in the popup window. Similarly, on the organisation details page in Figure 9, the associated individuals are listed along with their roles and their KYC statuses. The recognised methods for proving a relationship s authenticity are listed. If the user edits the details, for example to verify a relation, the user s details are recorded against the action along with the date and time. This information is later used in reports and system auditing for traceability. 8
Figure 7 Individual details Figure 8 Individual check with audit tracking Figure 9 Organisation details 9
Figure 10 Organisation details showing successful relationship KYC Task Traceability As shown in the figures above, IRIS-KYC provides easy-to-use checklists for KYC compliance checking. The application offers flexibility in its configuration to allow financial institutes the ability to tailor the KYC checks for their own use. The system logs each step and provides inclusive reports with activity history. Signature tracking Signature tracking for individuals is simplified with IRIS-KYC. Once a sample signature is obtained, use the scanned document to outline the signature as shown in Figure 11. After outlining the signature there is a simple option to Copy Image. Figure 12 shows the organisation details screen and lists the individuals with signatures on file. When clicking on one of the signature files the individual details screen appears with the stored signature, as shown in Figure 13. Figure 11 Copy signature from scan 10
Figure 12 Save signature on file Figure 13 Individual details shows authorised stored signature 11
Periodic Reviews A key element of KYC is to ensure the initial client information remains satisfactory for financial dealings throughout its relationship with the financial institute. This requires periodic reviews after the initial client on-boarding. IRIS-KYC provides alerts when a customer s information needs revalidating and is easily configurable to meet the financial institute s review policy time period. Suspicious Activity Reporting (SAR) When a financial organisation carries out background KYC checks on a new customer, it must raise a Suspicious Activity Report (SAR) if there are concerns about the new customer s funds. The organisation is required to report its suspicions to the UK Financial Intelligence Unit (UKFIU). IRIS-KYC allows flagging of any suspicious behaviour for review internally. If the company decides to escalate the incident, the application can produce a report with all relevant client information and copies of associated documentation. Reports Various reports are available in IRIS-KYC. Standard reports include: missing documents, expired documents, customer details, and periodic review reports. Shown in Figure 13, the reporting tool in IRIS- KYC provides multiple filtering options and drill down features to provide extensive reporting capabilities. Figure 13 Reporting screen Contact Us In addition to the IRIS-KYC application, ECS can provide consultancy to help financial organisations comply with regulations. Our skilled financial services consultants have industry experience with governance, risk and compliance. For more information about IRIS-KYC or our services, please contact us at info@extended-content.com. 12