Multiple roles configuration
It is important to know the direction of a related party relationship while performing due diligence process. To make an association with the related party easy to understand, use a simple English format.
The system identifies two distinct relationships, Is or Has, that represent how a related party is associated with the contracting party in a given role and relationship.
For example, if you add Y as a party to X, the relationship has the following view:
Is a Beneficiary of X
Is a Primary Contact of X
Direct and indirect relationships
After you add a related party to a customer, it is essential to evaluate the related parties that the related party in question might have so that the system carries out the required due diligence procedures and considers the associated risk. The solutions represent such relationships on the related party grid by marking them as indirect.
When you add an existing related party Y to a contracting party X, the system navigates the entire relationship network. All related parties that are KYC significant and associated with Y or any related parties are brought in and associated with the contracting party. This logic is executed at each level until the system reaches the last related party in the network.
You can also manually add indirect related parties to a contracting party by selecting an intermediary party from the list of related parties that are added and already associated with the customer.
There are certain roles that have a corresponding implied role. Such implied roles are called enforced pairs and can typically be represented in a pair of Is and Has roles.
When you add or update related parties to have a particular role, the system detects any implied roles and automatically adds them to the relationship. For example, the party Y as a majority shareholder in the party X implies that X is a subsidiary of Y. For the relationships of the enforced pairs, see the following example:
Is a Majority Shareholder of X
Has X as Subsidiary