KYC Factory
What is KYC?
Know Your Customer (KYC) legislation has been introduced in most major financial centres across the globe.
KYC legislation is driven by recommendations and standards set by the Financial Action Task Force (FATF). The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory, and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system. Read more on the FATF website.
The risk-based approach
A fundamental feature of the latest recommendations (amendments) from FATF, which led to many countries amending their KYC laws, is the migration from a rules-based approach to a risk-based approach. This is seen as a major enhancement of all previous anti-money laundering (AML) strategies. The rules-based approach involves Accountable Institutions (AI) taking ownership of the crucial roles they play in protecting the integrity of the global financial system.
Key aspects of the amendments are:
- The introduction of the Risk Management and Compliance Programme (RMCP).
- The extension of the Know Your Customer (KYC) obligations.
RMCP is an articulation of the procedures that the accountable institution will employ to satisfy its KYC obligations and KYC compliance under the new amendments. This ensures that the accountable institution adheres to its own RMCP design, as well as ensuring that the RMCP design is in sync with international AML requirements.
Know Your Customer (KYC) obligations
The amendments have substantially extended the KYC obligations, particularly where trusts, partnerships and juristic persons (a human being (natural person) or a group of human beings, a corporation, a partnership, an estate, or other legal entity (artificial person or juristic person) recognised by law as having rights and duties) are concerned, whereas previously the KYC duty was confined to the identification of the client and the confirmation that it existed.
Accountable Institutions must now dig deeper and inquire into matters such as the nature of the client’s business operations, and the identity of its ultimate beneficial owner (UBO), being the natural person who ultimately benefits from the client’s assets and profits.
The KYC Factory system
The objective of Datanamix's KYC Factory system is to deliver a compliant, automated and fully digitised KYC system that caters for both juristic and natural persons, in a manner that is aligned with any RMCP and that can integrate with any rules engine, enterprise services bus (ESB) or workflow engine to trigger events.
Fully configurable process flow of the KYC Factory system
Consumer KYC verification
Business KYC verification
We strive to supply a totally paperless KYC system with minimum, or no document uploads.
The system automatically produces a declaration for the customer to sign, which can be done together with an application form or sales contract.
The compliance team receives a detailed compliance report, automatically produced by the system, based on all data collected throughout the process.
We strive to supply a totally paperless KYC system with minimum, or no document uploads.
The system automatically produces a declaration for the customer to sign, which can be done together with an application form or sales contract.
The compliance team receives a detailed compliance report, automatically produced by the system, based on all data collected throughout the process.
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