All the dynamic questionnaires used by the application to support the due diligence functions are powered by the Know Your Customer Engine. The following sections explain how some of the basic functionality of this utility module is used within the context of Pega Client Lifecycle Management for Financial Services.
For more information about the core capabilities of the Know Your Customer Engine, see Pega Know Your Customer for Financial Services Implementation Guide.
Policy profile storage
Know Your Customer for Financial Services 8.2, that is shipped with this product, contains some significant changes to the way customer policy profiles are stored. These policy profiles include the KYC questions and answers collected from KYC cases which are stored for audit and reuse purposes.
In previous versions of the application, customer KYC data was stored in their master profile. You can now store the KYC Types associated with a customer in a new policy profile repository. By default, the system uses the new policy profile to store the KYC data of new customers. Existing customers' KYC data that was stored in their master profile will be automatically migrated into the new repository the next time that their master profile is saved. This migration process automatically transfers all KYC data into the new repository.
This change significantly reduces the footprint of the master profile and will improve the overall performance of the application. It is important to note, however, that implementations with custom master profile functionality will need to assess the impact of the changes and act accordingly.
For more details about how to configure this functionality, including how to disable it and restore the legacy mode, see the Configuring the policy profile section of the Pega Know Your Customer for Financial Services Implementation Guide.
Surgical policy updates
Pega Client Lifecycle Management for Financial Services is required to keep the KYC cases updated with the latest KYC polices so that the application can remain compliant with regulatory rules. Pega Client Lifecycle Management for Financial Services uses the Surgical policy update (SPU) feature from the KYC Engine to constantly push the new policies to in-flight KYC cases, when such policies are created or imported into the system.
Any KYC case in Pending-KYC, Pending-KYCReview, or Pending-KYCRMReview status is classified as an in-flight case and considered for a policy update. Pega Client Lifecycle Management for Financial Services uses the SPU in both the background and in manual update mode and thus ensures in-flight cases receive changes to regulatory policies.
When a policy update is applied to a KYC case, an in-flight case in the review stage might be rendered incomplete due to the application of new or updated policies. These cases must be reverted to the data collection assignments for the KYC operator to enter the required information. Restart the in-flight case to ensure that the STP mode determines the correct assignment for the case. See Case navigation to learn more about the STP mode.
When a policy is updated on a case, the assignee is shown a message on both the confirmation and the data collection screens to ensure that the assignee is informed of the update and can perform the next actions as required.
Approved and resolved KYC policies are isolated from posterior changes in the rules by using the KYC Engine policy-freezing mechanism. Thus the resolved cases and the KYC types present in the master profiles present the KYC types in the form that they were approved in the case.
For more information about Surgical policy updates, see the Surgical policy update topic in the Pega Know Your Customer for Financial Services Implementation Guide.