KNOW YOUR CUSTOMER (KYC)
A single out-of-the box platform for all Know Your Customer (KYC) and regulatory
compliance requirements to efficiently onboard and maintain multi-product and
multi-jurisdictional clients from retail through to commercial banking.
www.fenergo.com [email protected]
“Fenergo’s Know Your Customer (KYC) efficiently manages all KYC and regulatory
compliance requirements throughout the entire client lifecycle, including regular,
ad-hoc and event-triggered reviews, as well as data and documentation refreshes.”
Industry Challenge:
In the aftermath of the 2008 global financial crisis and in an effort to implement a risk-based approach to compliance,
financial institutions are required to provide more data and documentation on clients and counterparties than ever
before. Furthermore, with the recent introduction of new regulations, Dodd-Frank and FATCA to name but two, there
is now an additional requirement to categorize clients as part of the KYC process. As a result, Know Your Customer
(KYC) compliance still proves to be a significant regulatory and operational challenge for most financial institutions
around the world.
Unfortunately, it doesn’t stop there.
With a requirement to ensure lifecycle compliance to KYC regulations both on a local and global level, financial
institutions are necessitated to perform regular client reviews based on assigned risk ratings. In financial institutions
characterized by limited resources and siloed solutions, the response to this has very often been to throw people at
the effort. However, this has only added cost and complexity to the process and is not a long-term, sustainable
solution.
The Solution:
Fenergo’s Know Your Customer (KYC) is a single, integrated platform that efficiently manages all KYC and
regulatory compliance requirements from initial take-on right through the entire client lifecycle, including regular,
ad-hoc and event-triggered reviews, as well as data and documentation refreshes.
www.fenergo.com [email protected]
“Fenergo Know Your Customer offers a risk-based approach to KYC compliance
that efficiently focuses resources on higher risk clients and ensures lifecycle
compliance with global and local KYC regulations.”
Rules-Driven Compliance
Based upon a sophisticated Regulatory Rules Engine, the Fenergo solution uses dynamic decision tree intelligence
to determine the regulatory journey of the client including all the regulations, KYC questionnaires, classifications and
risk assessments that need to be adhered to and performed. Furthermore, it also determines all of the client and
counterparty data and documentation that is required to support the KYC and regulatory compliance obligations.
Measure Risk, Manage Compliance
It is specifically designed to accurately measure and monitor the risk exposure presented by clients, and minimize
this risk by ensuring continued compliance throughout the client lifecycle. From the moment a client is ready to be
onboarded, the solution examines all relevant client data to calculate an appropriate risk-rating for the client. Its
ability to create a single client view of all individuals, entities and ultimate beneficial owners enables institutions to
conduct accurate KYC and AML risk assessments.
A Risk-Based Approach to Lifecycle Compliance
The solution adopts a risk-based approach to Regulatory Onboarding and Client Lifecycle Management by assigning
a risk-rating based on the data provided. This risk score dictates the level of due diligence the legal entity will have
to undergo – either a standard level of due diligence (CDD) or an enhanced level of due diligence (EDD) for a
higher-risk entity. In addition, each entity will also undergo ongoing due diligence (ODD) as their risk status changes
over time and the system facilitates event-triggered reviews based on materially significant changes in data, enabling
the institution to identify and prevent evolving threats.
Focus Resources on Higher Risk Entities
The rules-driven risk-scoring capabilities of Fenergo KYC enable financial institutions to focus scarce resources on
reviewing higher-risk legal entities. This is as much about achieving operational efficiencies as it is regulatory
compliance. While Fenergo Regulatory Rules Engine manages the compliance review obligations, Fenergo KYC’s
advanced Capacity Management module provides the ability to smooth out demand for reviews throughout the year
based on client risk ratings and the availability of compliance review resources. It enables compliance managers to
re-allocate higher risk clients and match these to available resources throughout the entire year to ensure continued
compliance. Furthermore, this tool also enables compliance teams to group related entities or associations together
to ensure a review is done in tandem e.g. for a related set of businesses under a parent group.
Improve Operational Efficiencies, Reduce Cost of Compliance
Through its optimized workflow automation, the Fenergo KYC solution ensures the systemized enforcement of data,
document gathering and compliance requirements across the bank, promoting an institution-wide, single client view.
Its integrated management and maintenance of compliance documentation, as well as its ability to automatically
generate and file regulatory reports, enables financial institutions to save valuable time and effort in maintaining a
high level of compliance. In addition, the solution provides full client activity management including queries and
complaints, data change requests, case management and correspondent tracking.
www.fenergo.com [email protected]
With Fenergo KYC, you can
Achieve compliance with evolving AML/CTF legislation and ensure a timely and efficient onboarding
of clients;
Automate risk-scoring processes throughout the lifetime of the client, minimizing overall risk to
your institution;
Understand the true nature and purpose of the account being set up, investigate sources of wealth
and define Ultimate Beneficial Ownership;
Gain a clear view of the size of risk presented to your institution from a financial, regulatory
and reputational perspective;
Focus resources on higher-risk entities and conduct ongoing due diligence based on regular reviews
and change of circumstance data (achieved across your institution through integration capabilities);
Lower the cost of ownership with a flexible solution that can be adapted to respond to a changing
regulatory environment.
The solution is available as a standalone module or can be fully integrated with the Fenergo Client Lifecycle
Management solution.
To request a complimentary
demonstration of Fenergo KYC,
please email [email protected].
Did you know?
With 100% focus on financial services, Fenergo’s Regulatory Analysts and R&D teams are solely
committed to addressing and solving the challenges faced by investment, corporate and private
banks. Fenergo works closely with our clients to ensure that all of their regulatory compliance and
entity data management requirements are met fully and satisfy regulatory scrutiny. Fenergo runs a
number of client engagement forums such as Client Advisory Boards and Regulatory Forums,
which provide our clients with a direct impact on the Fenergo solution suite and ensure that our
solutions are closely aligned to solve the challenges our clients are facing.
www.fenergo.com [email protected]
