Know Your Customer

7.14

STANDARD DEMONSTRATION GUIDE

 © Copyright 2015
Pegasystems Inc., Cambridge, MA
All rights reserved.

Trademarks

For Pegasystems Inc. trademarks and registered trademarks, all rights reserved. Other brand or product names
are trademarks of their respective holders.

For information about the third-party software that is delivered with the product, refer to the third-party license
file on your installation media that is specific to your release.

Notices

This publication describes and/or represents products and services of Pegasystems Inc. It may contain trade
secrets and proprietary information that are protected by various federal, state, and international laws, and
distributed under licenses restricting their use, copying, modification, distribution, or transmittal in any form
without prior written authorization of Pegasystems Inc.

This publication is current as of the date of publication only. Changes to the publication may be made from
time to time at the discretion of Pegasystems Inc. This publication remains the property of Pegasystems Inc.
and must be returned to it upon request. This publication does not imply any commitment to offer or deliver
the products or services described herein.

This publication may include references to Pegasystems Inc. product features that have not been licensed by
you or your company. If you have questions about whether a particular capability is included in your
installation, please consult your Pegasystems Inc. services consultant.

Although Pegasystems Inc. strives for accuracy in its publications, any publication may contain inaccuracies or
typographical errors, as well as technical inaccuracies. Pegasystems Inc. may make improvements and/or
changes to the publication at any time.

Any references in this publication to non-Pegasystems websites are provided for convenience only and do not
serve as an endorsement of these websites. The materials at these websites are not part of the material for
Pegasystems products, and use of those websites is at your own risk.

Information concerning non-Pegasystems products was obtained from the suppliers of those products, their
publications, or other publicly available sources. Address questions about non-Pegasystems products to the
suppliers of those products.

This publication may contain examples used in daily business operations that include the names of people,
companies, products, and other third-party publications. Such examples are fictitious and any similarity to the
names or other data used by an actual business enterprise or individual is coincidental.

This information is the property of:

Pegasystems Inc.
One Rogers Street
Cambridge, MA 02142-1209
USA
Phone: (617) 374-9600
Fax: (617) 374-9620
www.pega.com

Document: <Know Your Customer Standard Demonstration Guide

Software Version: 7.14

Updated: November 2015

CONTENTS
Overview ..................................................................................................................... 1-1
Sign-on and dashboard navigation ............................................................................................ 1-2
Pre-demonstration setup part A ................................................................................................ 1-4
Create pre-demo case for Eurotech...................................................................................... 1-4
Create pre-demo case for Eva Smith (Related party of Eurotech) ....................................... 1-7
Pre-demonstration setup part B .............................................................................................. 1-10

Demonstration Part 1 – Dashboard and auto-case creation ................................... 2-1

Customer Search .................................................................................................................. 2-5
Responsive UI ....................................................................................................................... 2-6

Demonstration Part 2 – Manual KYC Case creation ................................................ 3-1

Eurotech – Selected Account & Applicable KYC Types Matrix ............................................ 3-1
Create new account/product onboarding case with related parties ...................................... 3-3
Create New Business Onboarding Case for Individual....................................................... 3-16

Demonstration Part 3 – The KYC Profile .................................................................. 4-1

Locating and navigating Profiles ........................................................................................... 4-1
KYC Review Feature............................................................................................................. 4-3
Hierarchy visualization tool ................................................................................................... 4-5
Node Icons ............................................................................................................................ 4-6
Tools Gadget ......................................................................................................................... 4-7

Demonstration Part 4 – Rule Manager Portal ........................................................... 5-1

Demonstrate KYC Rule Manager Portal ................................................................................... 5-1
1 Overview

This demonstration script showcases the following KYC application and Pega 7 Platform
technology assets:

1. Pega 7 Case Management

a. Comprehensive dashboard charts and reports
b. Mobile device readiness
2. Automated bulk data import and case creation
a. .csv file import for new business and FATCA remediation case creation
b. Auto-assignment of work to a workgroup
3. Manual case creation
a. New business onboarding case creation
4. Sub-case creation for related parties
a. parent/child case relationships with dependencies
5. Risk Rating engine
a. DSM scorecard rule
b. Risk change and new applicable Type based on underlying risk of related party
6. Pre-configured, 2000+ rules and logic for KYC due diligence
a. Conditional display of global and regional KYC regulatory requirements (FATCA, Standard
Due Diligence, Enhanced Due Diligence, EMIR, MiFID, etc…)
7. Email correspondence
a. Dynamic Eform selection
b. Email correspondence template
8. Customer Profile
a. Re-use of captured and approved due diligence data
b. Automated KYC Reviews
c. Sample corporate hierarchy viewer
9. Corporate Hierarchy Viewer (sample)
a. Built using mxGraph technology
10. Content Management Interoperability Services (CMIS) Integration
a. Alfresco content server integration assets
11. Pre-configured KYC reports

Demonstration back story: When new customers, accounts and products are onboarded at a
financial institution, due diligence must be performed before the accounts can be transacted
against or before the institution can begin its business relationship with the client.

Know Your Customer Standard Demonstration Guide 1-1

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

Among other features, this script demonstrates how the KYC system dynamically selects and
applies regulatory data capture processes when new accounts, products and customers are
onboarded at a financial institution.

Assumption: When demonstrating manual case creation, the assumption is made that customer
and account data already exists in systems of record. The user walks through the process of
selecting pre-existing customer, account, product and related party data required for KYC
evaluation.

The assumption is also made that a single user will be presented all applicable due diligence
requirements for completion. In a production environment, it is expected that multiple cases with
unique KYC requirements will be created and assigned to various operators in one or more
workgroups.

Important: When demonstrating KYC as a stand-alone system, KYC does not demonstrate the
intricate processes and steps required for collecting onboarding data (account setup, product
selection, etc…) for various lines of business such as investment banking or commercial
lending.

It is expected that upon implementation, the KYC system will be extended and/or integrated
with Pega-based and non-Pega based onboarding systems that serve as the entire end-to-end
onboarding and due diligence process.

Sign-on and dashboard navigation

1. Sign on as [email protected] > password: install
 Diya is the KYC Analyst Manager with ‘super-user’ access.

2. The KYC Analyst Manager portal provides a ‘super-user’ view with access to all charts,
reports, users and cases.
3. The following diagram details each of the key features and tools available on the dashboard
that are critical to demonstrating the system

Know Your Customer Standard Demonstration Guide 1-2

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

 1. Navigation
− Dashboard – Default view for KYC Manager sign-on
− My Work – Contains worklist of active cases and all workgroup team members with
cases assigned to them when file import case creation is initiated
− Calendar – Useful for explaining how KYC Cases with SLA’s will display in the calendar
to ensure cases are managed and worked in a timely manner
− Reports – Provides pre-configured KYC and FATCA reports available to KYC Managers
for re-use and extension
 2. Create +
− Use this action to create manual new business onboarding cases as explained later in
this guide
 3. Search and Operator ID
− Search for Profiles, sample customers and cases using Pega’s default search tool
− Indexing tool provided in the Pega developer portal must be run
− Use the Mobile preview to demonstrate Pega’s dynamic UI for mobile devices
 4. Dashboard Charts
− Six re-usable and extendable KYC-related charts and graphs are provided to showcase
Pega’s interactive data visualization

Know Your Customer Standard Demonstration Guide 1-3

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

 5. Demo Tools
− Import .csv files containing sample data to create cases and populate the dashboard
− Demonstrate how the system can retrieve FATCA data and format the data in xml for
IRS reporting
− Demonstrate how due diligence data can be extracted from the database and output to
an Excel file.
− Delete all sample case and Profile data in the database to demonstrate the system from
a ‘clean slate’.

Pre-demonstration setup part A

When limited time exists for demonstration, demo users can create cases and complete KYC
Type requirements in advance which will reduce the amount of time required for a live
demonstration.

Important: Creating cases and completing KYC Types in advance also helps demonstrate re-
use of KYC data stored at the Profile.

Create pre-demo case for Eurotech

1. Click Create > New Business Onboarding Case

2. In search field, enter ‘euro’ and press Search

Know Your Customer Standard Demonstration Guide 1-4

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

3. Select ‘Eurotech’ > Press Next>>

4. At the ‘Select Accounts’ step, select NO account and press Next

5. At the ‘Select Related Parties’ step, press Finish

No related parties display because no accounts were selected

6. A New Business Onboarding case is created with the following KYC Type:
 Entity Standard Due Diligence

Know Your Customer Standard Demonstration Guide 1-5

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

Note – The displayed KYC Type is a basic due diligence requirement that, for purposes of
demonstration, must be completed when no account or products are present. i.e. – only the customer
is being onboarded

Important - For all KYC Types displayed in a case, each applicable Type will contain only a
single mandatory Item that requires a response. This will facilitate and quicken the completion
process.

 Mandatory Items are designated with an orange asterisk icon:

7. Complete the Entity Standard Due Diligence KYC Type by selecting a Yes response for
the single, mandatory Item

Know Your Customer Standard Demonstration Guide 1-6

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

8. The KYC Type is marked as 100% complete. Press Finish

9. At the ‘New Business Onboarding Decision’ step, select Approve and press Submit

10. The case is resolved. Status is changed to Resolved-Approved. Close this work item

Create pre-demo case for Eva Smith (Related party of Eurotech)

1. Click the Create a Case icon > Create New Business Onboarding Case

Know Your Customer Standard Demonstration Guide 1-7

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

2. In the search field, enter ‘eva’ > Press Search

3. Select ‘Eva Smith’ > Press Next>>

4. At the ‘Select accounts’ step, select NO accounts and press Next>>

5. At the ‘Select Related Parties’ step, press Finish
6. A case is created displaying the following KYC Type:
 Individual Standard Due Diligence

Know Your Customer Standard Demonstration Guide 1-8

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

Note – The displayed KYC Type is a basic due diligence requirement that, for purposes
of this demonstration, must be completed when no account or products are present. i.e.
– only the customer is being onboarded

Important - For all KYC Types displayed in a case, each applicable Type will contain only one
mandatory Item that requires a response. This will facilitate and quicken the completion
process.

 Mandatory Items are designated with an orange asterisk:

7. Complete the Individual Standard Due Diligence requirement by selecting a NO response
for the mandatory item

Know Your Customer Standard Demonstration Guide 1-9

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

8. Press Finish
9. At the ‘New Business Onboarding Decision’ step, select Approve and press Submit

10. The KYC Case for Eva Smith is resolved

Pre-demonstration setup part B

Important! - The following steps can be performed prior to or during live demonstration to
showcase file import and case creation assets provided in KYC and the Pega7 platform.

1. Open Demo Tools on the dashboard

2. Select the New Business Onboarding import file and the Open button displays

Know Your Customer Standard Demonstration Guide 1-10

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

3. Click Open to access the sample file used for data import and case creation
4. In the Binary File rule form, click Download File and to download and view the csv file

5. The .csv file opens in Excel to display the sample data used by the system to create cases

Know Your Customer Standard Demonstration Guide 1-11

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

Discussion points:
 Data model, file format and parsing rules included in the KYC for FS application can be
modified to accommodate client’s specific data requirements
 Different formats can be used (xlsx, csv, tab delimited, xml, etc…)
 File can be maintained by the client and processed by a system agent or other automated
process
 Although file import and parsing functionality is ideal for quickly populating the KYC
Manager dashboard for demonstrations, this feature also highlights the system’s ability to
use data for batch/bulk case creation. This has many uses for production implementations
and would typically be run using an automated process.
6. Return to the Dashboard and open the Demo Tools gadget
7. Click the Run button to start the file import process

8. ‘In Progress’ icon will display and when the import is finished, the dashboard will refresh to
show the dashboard charts populated with data.

Know Your Customer Standard Demonstration Guide 1-12

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

9. Perform the same steps for the FATCA sample file by navigating to Demo Tools, select the
FATCA file in the dropdown list and click the Run button.
10. The dashboard charts will populate with additional Profile and Case data. If time allows, it is
critical to discuss these charts with the audience as they showcase both Pega 7 chart and
reporting technology as well as pre-configured assets in the application.
11. If you need to refresh the database to clear the dashboard of all cases and data, expand the
Demo Tools gadget and click Delete sample cases button

12. Press Submit when prompted to clear any existing sample work objects and data from the
system
13. The Dashboard will refresh and display no cases or data when complete

Important! – refer to the FATCA demonstration guide for in-depth detail on demonstrating and
explaining FATCA functionality included in the application.

Know Your Customer Standard Demonstration Guide 1-13

2 Demonstration Part 1 – Dashboard and
auto-case creation

 Sign-on as diya.cleveland@fsi / PW: install

The initial dashboard is the first part of the system the audience will see so there are several
key assets and pieces of functionality that should be demonstrated. Time permitting, each
browser (Dashboard, My Work, Calendar, Reports) in the KYC Manager portal should be
touched on.

 Dashboard
− Each chart has a description detailing its purpose
− Each chart provides ‘Chart Actions’ to open the source report and access and open
Profiles or Cases
- Each report has a filtering condition which allows the conditions to be modified in
real-time
− Pie charts are ‘exploding’. Click any of the grouping values to ‘explode’ the value’s
shape in the chart
− As cases are processed and Items are completed, data will populate the ‘Active cases -
% of completed due diligence’ report
− You can run the file imports again to generate more cases which will set threshold colors
in the ‘Active cases per analyst’ report

Know Your Customer Standard Demonstration Guide 2-1

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

 My Work
− This is the KYC Manager’s view of all Cases for all team members in the workgroup
− When the file imports are run and cases created, cases are auto-assigned to Team
members
− Click and drag a case from the Urgent Work list to the right and into Diya Cleveland’s
queue. (The transfer will occur when you see case assignment label change to ‘Diya
Cleveland’)
− These are default Pega case management layouts and tools and should be discussed to
showcase Pega’s case mgmt. technology

Know Your Customer Standard Demonstration Guide 2-2

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

 Calendar
− Assigning work to Diya Cleveland in the previous section makes cases visible in Diya’s
calendar
− The Service Level Agreement (SLA) set for the case(s) (1 day goal) becomes apparent
when the newly assigned cases appear on Diya’s calendar
− This functionality is key when performing due diligence. It prevents work from being
missed
− Double-click any of the items to open the Case

 Reports
KYC for FS is shipped with pre-configured, KYC and FATCA-specific reports and charts that are
accessible via the Private categories gadget. The list of reports is a follows:

Know Your Customer Standard Demonstration Guide 2-3

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

Report Name Purpose

KYC Type Rule - Item configuration audit history Gets Item audit history for rule difference comparison

Profiles (Retail customer risk change assessment) Helps assess impact when risk factor change is required
Profiles (Commercial customer risk change assessment) Helps assess impact when risk factor change is required
KYC Profile - New Customer Profiles by Region (MAP) Interactive chart with drill-down to Profiles from Global/regional
to country view
KYC Reviews - New and in-progress cases Gets newly created and in-progress KYC Review cases
Profiles (Upcoming KYC Review - 30 Day Outlook) Gets customers with upcoming KYC Reviews within the next
30 days
FATCA - Summary of Acct Holders and IRS Reporting Codes Gets account holders and their FATCA IRS reporting codes
from the Profile
Profiles (Opened today in Europe by country) Displays map of Europe with count of new Profiles opened by
country
Profiles (Opened Today by Risk) Distribution of new Profiles opened today by Risk
Profiles (Distribution Opened Today by World Region) Distribution of Profiles opened today by world region
Profiles (opened today - northern Europe) Profiles opened today for northern Europe countries
KYC Cases (In-Progress Due Diligence Cases per Analyst) Gets count of in-progress due diligence cases for each analyst
KYC Cases (Active Cases by Type) Distribution of active KYC cases by type.
KYC Cases - Pct. of Required Due Diligence Data Collected Active cases with % calculation of collected due diligence data

To access the pre-configured reports:

1. Click the KYC Manager Reports link to view the full list

2. To showcase Pega’s chart technology, click the Profiles (All by region, country and risk –
MAP) report link
3. A global map showing count of Profiles opened for the region displays

Know Your Customer Standard Demonstration Guide 2-4

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

4. Click on a region to drill down to the country

Customer Search

Important! – Sign on as KYCFSSysAdmin / install to enable and execute indexing prior to using
the search feature. DesignerStudio > System > Settings > Search

1. Use Pega’s default searching features to locate Profiles and Cases by key data values. You
can search by:
 Name
 Customer ID
 Customer Type
 Occupation / Industry
 Case ID
 Profile ID
 And many more….
2. In the search field, enter a value and click the magnifying glass icon
3. All Cases and Profiles meeting the search criteria display

Know Your Customer Standard Demonstration Guide 2-5

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

Responsive UI
1. KYC manager dashboard accommodates different resolutions and devices via Pega
responsive UI technology
2. You can re-size browser to show how dashboard adjusts to fit content
3. You can also select Mobile preview’ from Diya’s operator ID dropdown selections to
demonstrate Pega’s mobile device compatibility

4. In the Mobile Preview window, select the different devices to preview the different
resolutions and UI layouts

Know Your Customer Standard Demonstration Guide 2-6

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

Important - If required to demonstrate the system within a short timeframe, then navigate to the
My Work browser and open any of the cases from a user’s work list to process the case and tell
the KYC and/or FATCA evaluation story. These cases have fewer KYC requirements to
complete. They have no related parties and no child sub-cases and take less time to process.

Know Your Customer Standard Demonstration Guide 2-7

3 Demonstration Part 2 – Manual KYC Case
creation

Important – Use the following matrix as a quick reference to determine which KYC Types are
selected and displayed in a case based on the selected account(s).

You can demo specific account/product-based regulatory requirements by selecting specific

Account/Account Type/Product/ Location combinations. The resulting Type(s) is Highlighted
Yellow.

Other selected Types are driven by factors such as Customer Type (individual or business) or
by a change in Risk.

Eurotech – Selected Account & Applicable KYC Types Matrix

Account # Account Type Product Location (Country) Selected & Displayed Types
3045000945 Investment Mutual Fund Canada Entity Standard Due
Diligence
Investment Profile
Canada IIROC
FATCA – Taxable Entities
Entity Enhanced Due
Diligence (when risk changed
to HIGH)
Account Enhanced Due
Diligence (when risk changed
to HIGH)
Account # Account Type Product Location (Country) Selected & Displayed Types
3045000946 Investment Mutual Fund United States Entity Standard Due Diligence
Investment Profile
US Mutual Fund
US Brokerage
US FINRA 2111
Entity Enhanced Due
Diligence (risk changed to
HIGH)
Account Enhanced Due
Diligence (risk changed to
HIGH)
Account # Account Type Product Location (Country) Selected & Displayed Types
3045000947 Investment Credit Default SWAP United States Entity Standard Due
Diligence
Investment Profile
US DFA SWAPS
US Brokerage

Know Your Customer Standard Demonstration Guide 3-1

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

US FINRA 2111
US SWAPS with Derivatives
Entity Enhanced Due
Diligence (risk changed to
HIGH)
Account Enhanced Due
Diligence (risk changed to
HIGH)
Account # Account Type Product Location (Country) Selected & Displayed Types
3045000948 Escrow Wire Transfer United Kingdom Entity Standard Due
Diligence
Entity Enhanced Due
Diligence (risk changed to
HIGH)
Account Enhanced Due
Diligence (risk changed to
HIGH)
Escrow Acct FATCA EXEMPT
Account # Account Type Product Location (Country) Selected & Displayed Types
3045000949 Investment Trading United Kingdom Entity Standard Due
Diligence
Investment Profile
EU MiFID
EU EMIR
Entity Enhanced Due
Diligence (risk changed to
HIGH)
Account Enhanced Due
Diligence (risk changed to
HIGH)
FATCA – Taxable Entities
Selecting NO accounts Entity Standard Due
Diligence
Entity Enhanced Due
Diligence (risk changed to
HIGH)
Selecting ALL accounts Applies these 12 KYC Types:
3045000945 Investment Trading Canada Entity Standard Due
3045000946 Investment Mutual United Diligence
Fund States
Investment Profile
3045000947 Investment Credit United
Default States
US DFA SWAPS
SWAP

Know Your Customer Standard Demonstration Guide 3-2

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

3045000948 Escrow Wire United US Brokerage

Transfer Kingdom
US FINRA 2111
3045000949 Investment Trading United
Kingdom
US SWAPS with Derivatives

Entity Enhanced Due

Diligence (risk changed to
HIGH)

Account Enhanced Due

Diligence (risk changed to
HIGH)

FATCA – Taxable Entities

Canada IIROC

EU MiFID

EU EMIR

US Mutual Fund

Create new account/product onboarding case with related parties

Using the matrix above, this script will demonstrate selection of all accounts and a single,
related party associated with an account.

Important – When demonstrating the system, the user should determine any specific due
diligence requirements prior to the demonstration to help determine which accounts to select.
Selected accounts will ultimately drive the applicable KYC Types as detailed in the
Account/Type matrix. For this script, all accounts are selected which will drive the selection
and display of all applicable Types.

1. Click Create > New Business Onboarding Case

2. In search field, enter ‘euro’ > Press Search

Know Your Customer Standard Demonstration Guide 3-3

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

3. Select ‘Eurotech’ > Press Next>>

4. All accounts and associated products display (expand to view products)

5. Select ALL Accounts > Press Next>>

6. The system queries related parties for each account and returns parties for all of the
selected accounts
 Indirect account holder (Albert Meyer) appears for all accounts since the individual is 15%
controlling shareholder of the company and therefore considered related to each account
 Direct account holder (Eva Smith) is an authorized signor for all accounts

Know Your Customer Standard Demonstration Guide 3-4

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

Important – Depending on time, the demo user can select one party, both parties, or no related parties
for this customer.

Selecting one party creates one sub-case that must be processed (less time required)

Selecting both parties creates two sub-cases that must be processed (more time required). This will
require the demo user to complete due diligence requirements for both related parties.

Selecting NO parties creates NO child sub-cases.

Depending on which related party is selected, the following Types will display in each child sub-
case:

Related party Selected & Displayed Types for each:

Albert Meyer Individual Standard Due Diligence
Individual Enhanced Due Diligence (if/when risk changed to
HIGH)
FATCA - Individuals

Eva Smith Individual Standard Due Diligence

Individual Enhanced Due Diligence (if/when risk changed to
HIGH)
FATCA - Individuals

7. Select Eva Smith as one of the related parties for any one of the accounts > press Finish

Know Your Customer Standard Demonstration Guide 3-5

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

8. Parent case for Eurotech is created with a child sub-case for the selected related party

Discussion point:
Press submit to show how case dependencies are enforced. The parent case for Eurotech
cannot be processed until the related party’s sub-case is processed and completed.

9. Click the Collect & Evaluate Requirement Data link to open the sub-case for the related
party.
10. The child case for Eva Smith is displayed

Know Your Customer Standard Demonstration Guide 3-6

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

Discussion points:
 Note that the due diligence requirements are 50% complete. Assumption is made that initial
due diligence has already been performed for this person (completed in pre-demo setup).
The completed due diligence data stored in the Profile has been re-used.
 FATCA Type appears because US Person status must be evaluated for parties related to
onboarding of new accounts that meet FATCA requirements (these accounts are at the
parent case level)
 Showing the sub-case with a pre-completed KYC Types demonstrates re-use of completed
and approved due diligence data contained in the customer’s Profile
 Cases where required due diligence data is completed and approved can be auto-resolved
for straight-through processing

11. Demonstrate Content Server Integration (CMIS assets) – this requires CMIS integration
configuration. (See Implementation Guide). System will use default documents if CMIS is
not configured.
a. Navigate to the Standard Due Diligence Type
b. Open the Documentation verification group

c. Click the Search button

Know Your Customer Standard Demonstration Guide 3-7

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

 If CMIS assets are turned ‘on’ (enabled) in the OOB sample application or configured in a
custom-built application as shown below…

… then the system will connect to the content server and display the Content Server pop-up
window for navigation and document selection.

 If CMIS assets are turned ‘off’, then the default functionality will search the local instance for
sample documents and display the following dialog window:

Know Your Customer Standard Demonstration Guide 3-8

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

Important – By default, the KYC solution and sample application are shipped with CMIS
Integration disabled. The system locates sample files shipped within a sample document
database table installed with the system. For detailed instructions on Content Server
configuration, please refer to the Implementation Guide.

12. Click the info icon next to the status bar to show the calculation of mandatory and complete
Items. This is an OOB asset that will automatically calculate mandatory vs. completed Items
for every applicable KYC Type.

13. Return to the Individual Standard Due Diligence KYC Type

14. Select YES for ‘Has the individual been identified as a PEP?’

Know Your Customer Standard Demonstration Guide 3-9

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

15. Note the following:

 The customer’s risk is changed to High
 The % Complete display re-calculates as there are new Items to complete
 Individual Enhanced Due Diligence displays for completion

Important – Upon implementation, Item response property values (i.e. – ‘Is PEP?’) can be auto-set to a
value passed from another system that exists elsewhere on a clipboard page by using the
DataTransfrom feature in the KYC Type and Item definition configuration screens.

16. Navigate to the Customer risk tab at the footer of the case. This display shows why the risk
changed to HIGH (High Risk Item response detected)

Know Your Customer Standard Demonstration Guide 3-10

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

17. Click on any of the risk icons to open the business rule that defines the risk evaluation

 Decision Strategy Manager (DSM) assets are leveraged to utilize scorecard rules for
calculating a risk rating.

18. Navigate to the FATCA – Individuals KYC Type > Select Yes for the first Item
a. A more complex FATCA scenario can be demonstrated when the response is set to No
(Please see the FATCA Demonstration Guide for more detail)

Know Your Customer Standard Demonstration Guide 3-11

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

b. Based on the selected responses, the system will ‘drive’ the user to request the
appropriate Form for tax reporting

c. Press the Request button and a window displays to enter the email of the intended
recipient
d. Press Submit.

e. When the screen refreshes, the Item and Type are marked complete
f. By default, outbound email for the associated correspondence rule is not configured and
active. Outbound correspondence is not required for demonstration. Out
correspondence is expected to be configured when the system is implemented in a
production environment depending on specific business requirements.
g. In the case header, select Other Actions > Attachments

Know Your Customer Standard Demonstration Guide 3-12

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

h. Open the Attachments window to view copies of the Email and Eform that were “sent”
and saved to the case.

19. Close the Attachments window and navigate to the Enhanced Due Diligence KYC Type.
Complete the single, mandatory Item.

20. Press Finish

21. At the New Business Onboarding Decision step, select Approve > press Submit
22. The child case for Eva Smith is resolved.
23. The parent case for Eurotech can now be processed

Know Your Customer Standard Demonstration Guide 3-13

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

Important – refer to the Eurotech’s account/KYC Type matrix to determine which Types you need to
apply and display in the Case. Remember: Selecting all accounts will apply all applicable KYC Types
which will increase the time required to navigate, explain and complete each Type.

24. Press Submit to process Eurotech’s parent case

25. The parent case with all applicable KYC Types is displayed

Discussion Points:
 Approved / completed KYC Type
− Standard Due Diligence was completed in the pre-demo setup and stored in Profile for
re-use

Know Your Customer Standard Demonstration Guide 3-14

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

 Parent case is HIGH Risk

− High Risk related party changed risk of the parent case to High
− Risk change applies Entity Enhanced Due diligence and Account Enhanced Due
Diligence Type
− Customer risk tab shows details

 New KYC Types Applied

− Press Finish to demonstrate validation warnings to ensure all mandatory Types and
Items are completed
− Complete each applicable KYC Type by completing the single, mandatory Item
26. When all required Types and Items are 100% complete, press Finish

27. At the New Business Onboarding Decision step > Select Approve > Press Submit
28. The case is Resolved-Approved

Know Your Customer Standard Demonstration Guide 3-15

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

Discussion Points:
29. At this stage of the case lifecycle, KYC data is synchronized with the customer’s Profile and
also written to the due diligence data index tables. This processing is pre-configured and
provided in the application’s each case type’s lifecycle by default. It is expected that when
implemented, data will also be communicated to other systems of record according to
business requirements.
30. The application provides service integration (SOAP services) to utilize bi-directional data
communication with both Pega and non-Pega applications
31. If KYC is installed and demonstrated with Pega’s OBFS application (Onboarding for
Financial Services), then both systems are configured to demonstrate bi-directional data
communication – NBB to KYC to NBB (See the KYC v7.14 Implementation Guide for more
detail on application integration)

Create New Business Onboarding Case for Individual

If time permits, a manual case can be created for Eva Smith (individual customer) that
demonstrates re-use of captured and approved due diligence data.

Follow the ‘create New Business Onboarding Case’ steps detailed earlier in this document for
Eva Smith

1. At the Select accounts step, select all accounts and press Next

2. NO related parties apply to this account > at the Select related parties step > select Finish
3. When the case is created, the US Life Insurance KYC Type and Account Enhanced Due
Diligence Types display and need to be completed. Other Types are marked complete as
they were completed in previous steps of this document.

Know Your Customer Standard Demonstration Guide 3-16

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

Selected Account Type Product Location Selected & Displayed

Account # (Country) Types
3045000960 Insurance Life United States Individual Standard Due
Diligence
3045000961 Deposit Wire Transfer United Kingdom
Individual Enhanced Due
Diligence (if/when risk changed
to HIGH)
Account Enhanced Due
Diligence
FATCA - Individuals
US Life Insurance

4. New Business Onboarding Case for Eva Smith

a. US Life Insurance KYC Type applies due to selected account

b. Account Enhanced Due Diligence KYC Type applies due to high risk and accounts
being onboarded
c. Remaining Type are complete – these are re-used from Profile
5. Complete the required Types and resolve the case.

Know Your Customer Standard Demonstration Guide 3-17

4 Demonstration Part 3 – The KYC Profile

Locating and navigating Profiles

1. While signed on as Diya Cleveland, go to the search field and enter ‘Eurotech’ >
press Enter or click the magnifying glass icon.

Note – Profiles can also be opened from any of the Profile-based charts on the dashboard.
Select Chart Actions > Show data

2. From the list of search results, click the Profile ID to open Eurotech’s Profile
3. Eurotech’s Profile displays

Header: Contains basic customer information stored for reference. Note - The Profile is not
intended or designed to replace master system of records. It is used to primarily store due
diligence data.

Know Your Customer Standard Demonstration Guide 4-1

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

Customer risk: Displays the most current risk rating information. The risk data stored in the
Profile represents the most recent and approved data that was sourced from the ‘last’ KYC case
synchronized with the Profile.

Due diligence: All approved and current due diligence requirements are stored here for re-use
for future cases. All data is read-only.

Related parties: Every related party associated with a customer’s new business onboarding
case undergoes due diligence evaluation within its own KYC case. When the parent KYC case
is synchronized with the Profile, the system will also synchronize and store a consolidated list of
all related parties in the Profile. Note – The Profile ID is a link that can be clicked to open the
Profile for the related party.

Cases: References active and resolved KYC Cases associated with customer’s Profile.

Know Your Customer Standard Demonstration Guide 4-2

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

KYC Review Feature

The KYC Review feature demonstrates the system’s ability to auto-generate KYC Review cases
based on a review date being reached.

Important! This feature ensures timely, risk-based reviews are performed for a financial institution’s
client base and streamlines the process by automating KYC Review case creation.

Dynamic system settings are shipped with the application that associate a time period, in years,
with a customer’s calculated risk rating. The default KYC Review date settings are as follows:

High risk - 1 year

Low Risk - 3 years

You can access the settings to view or customize them by signing on as KYCFSSysAdmin, go
to Explorer > SysAdmin > Dyanmic System Settings. Sort by name to locate the settings
associated with the PegaKYC ruleset

When a case is processed for a customer, resolved and synchronized with the Profile, the risk
value of the case (High, Low) is compared to the dynamic system setting and used to calculate
the ‘Next KYC Review’ value for the Profile.

You can view the ‘Next KYC review’ date in the header section of any Profile.

Know Your Customer Standard Demonstration Guide 4-3

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

To demonstrate how the system uses the ‘Next review date’ to auto-create KYC Review cases,
perform the following steps:

1. Go to Other actions > select Override Review date

2. At the pop-up window, change the date to today’s date and enter the mandatory audit note.
Press Submit

3. The Profile screen will refresh and the Next review date will be updated to today’s date
4. In the background, a system agent will locate Profiles with a ‘next review date’ containing
today’s date and automatically create a KYC Review case for the customer.
5. Navigate to Cases and click the refresh icon

Know Your Customer Standard Demonstration Guide 4-4

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

6. A KYC Review case will display in the list of the customer’s cases

7. Click the KYCR- case to open it

8. Note that the KYC Review case displays pre-existing, completed due diligence KYC Types.

Important! – According to the financial institution’s business requirements, it may be expected to

configure the system to nullify all due diligence and risk data for re-evaluation during the review
process. This will also require multiple sub-cases to evaluate related party and regional due diligence.
Additional KYC Review assets will be built in future versions of the application to address and enhance
this functional requirement.

Hierarchy visualization tool

A sample hierarchy visualization tool included in the application provides ability to create and
store hierarchical information associated with a customer. This tool is demonstrated from within
the Profile. The default functionality is configured to use data stored in the Profile of each
customer.

This tool uses mxGraph technology which is an open source, JavaScript diagramming
technology supported by Pega. You can learn more about jGraph and mxGraph here:
http://www.jgraph.com

Know Your Customer Standard Demonstration Guide 4-5

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

Important – this tool is intended as a model for client implementations only. Functionality is primarily for
demonstration and shows how the concept of the viewer can be used. It is assumed the client will
require customization and will be responsible for all customizations done in the field.

Relationship Viewer Shapes

1. Node – primary shape that represents an individual or business entity in the relationship
viewer.
There are 3 types of nodes:
 Root Node – Represents the individual or business that the relational structure pertains to.
The root (top) node always belong to the customer whose profile was opened and viewed.
 Parent Node – any node that has 1 or more nodes connected to it from “below”
 Child Node – any node that has another node connected to it from “above”
2. Connector – arrow shape that links 2 nodes together and is used to denote direction of
relationship

Node Icons

Delete – Used to remove a node from the display. Deleting a Parent node will remove all
associated Child nodes from the display. (Changes to the display are committed to the database
only when the save icon is pressed on the Tools gadget)

Add Child – this icon appears on the bottom of each node where one or more Child
nodes can be added to a Parent node.

Know Your Customer Standard Demonstration Guide 4-6

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

Important - If a Child node is added for a client that has its own Profile and relational structure, then the
‘Add Child’ icon will not display.

This will help avoid creation of numerous, relational structures for the same client within multiple
Profiles. A client’s relational structures should be maintained within its own Profile.

Tools Gadget

Zoom in Zoom out Actual size Print Poster Save Refresh

Print
Increases image Decreases image Reverts image to Shrinks the image Saves changes to Discards un-saved
size size the default size to standard page Segments display the client’s Profile changes
size and sends the into user-defined data structure
image to user’s number of
default printer sections for
poster printing

Using the Relationship Viewer

1. In the Profile’s header > Other Actions > Edit Relationships

The system opens the mxGraph relationship viewer and the default view shows the current
customer as the root node (Eurotech) and the related party (Eva Smith).

Know Your Customer Standard Demonstration Guide 4-7

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

Related parties may or may not be connected to the root depending on if related parties have
been processed in sub-cases for the client or if a user has previously maintained the data
structure.

Since Eva Smith was identified and processed as a related party, she is displayed as a related
part in the relationship viewer by default. Related Parties associated with an onboarding
scenario are automatically copied to a unique page used by the relationship viewer –
pyWorkParty(Customer). RelatedEntity

To add a child node to a node, perform the following steps:

2. Click the ‘Add Node’ icon to open the dialog window

3. You can search for existing customers in the sample KYC customer database by
checking the ‘Add Existing Customer’ box. A search field displays allowing you to search on
a name. Leave the field empty and click ‘Search’. The list of all sample KYC customers
displays. (By default, users would want to search first so they can reference customers that
have their own Profile.)

Know Your Customer Standard Demonstration Guide 4-8

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

4. Or, leave the ‘Add Existing Customer’ box unchecked and manually enter related entity data
a. Name – enter the name of the entity
b. Type – this will determine the icon to use (individual or business)
c. Ownership – ‘Owner of Parent’ points the connector from the child node to the parent
node (UP). ‘Owned by Parent’ points the arrow from the parent node to the child node
(DOWN).
d. Ownership Description – free text that appears on the connector label

Know Your Customer Standard Demonstration Guide 4-9

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

5. Press Submit to add the node to the structure

6. Press the Save icon.

Important! Node data is not saved to the database until the user presses the Save icon)

7. Since the newly added node is for a non-customer, the ‘Add Node’ icon appears.
8. Note – a green checkmark denotes that the node is for a customer with its own Profile.
Therefore, relational data should not be maintained here. Users should access the profile of
the related entity to add/update relationship data for the entity.

Know Your Customer Standard Demonstration Guide 4-10

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

9. To delete a node from the database, click the delete icon and press the Save button to
commit the changes
10. To edit a node’s data:
a. Right-click the node > select ‘edit node’

b. Dialog window opens with the existing fields and data populated

c. Edit the data as required > press Submit

d. Click the Save icon to commit your changes to the database

Know Your Customer Standard Demonstration Guide 4-11

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

e. You can re-open the Edit Relationships to show how the structure is saved to the
Profile

Know Your Customer Standard Demonstration Guide 4-12

5 Demonstration Part 4 – Rule Manager
Portal

Demonstrate KYC Rule Manager Portal

Demo users can showcase how the KYC application is designed to help business users create
and maintain KYC due diligence rules using a specialized portal designed specifically for this
purpose.

Important! – A custom ruleset must be added to the application stack in order to create new
Types or copy and update a pre-configured Type.

To configure a new ruleset for demonstrating Type and Item configuration:

1. Create a new rule set Create > Sys Admin > RuleSet
2. Set the Validation mode to Application Validation > Press Save

3. Add the sample ruleset to the KYC for FS application stack

a. Sign on as KYCFSSysAdmin / install
b. Open the KYC for Financial Services application

Know Your Customer Standard Demonstration Guide 5-1

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

c. Add the ruleset below the PegaKYCFSInt Ruleset as shown below.

d. Save the KYC for FS application. You are now ready to create new Types and Items for
demonstration.
To demonstrate creation and maintenance of KYC Types, perform the following steps:

1. Sign on as [email protected] PW: install

Know Your Customer Standard Demonstration Guide 5-2

 TITLE of INTERNAL DOCUMENT – Arial Bold 12 pt

2. The KYC Rule Manager portal displays

a. The left, navigation panel displays the pre-configured KYC Types organized into
categories
b. New categories (classes) can be created upon implementation
c. New Types can be created or existing ones can be modified

3. To demonstrate how new KYC Type rules are created, right-click on any category or on a
KYC Type > New > KYC Type

4. Save the new rule to your custom ruleset version

Important - For a detailed steps and supplemental information on how to create and configure KYC
Type and Item rules, please refer to the KYC Implementation Guide which can be found on the PDN at:
https://pdn.pega.com/products/know-your-customer

Know Your Customer Standard Demonstration Guide 5-3