It is critical for financial institutions to understand the risk of doing business with their portfolio of clients. Internal compliance teams need to ensure that internal processes are sufficient to satisfy the scrutiny of external regulators. Failure to do so can result in regulators issuing hefty fines and strict timelines to remediate raised compliance issues. In the worst-case scenario, this can even impact the financial viability of the institution.
The need to understand risk is not just during the initial onboarding, but over the lifetime of the client, right through to offboarding. Many events such as periodic risk-based reviews, data changes, document expiry, and ownership updates will result in the need for re-assessment of risk.
In the Pega Client Lifecycle Management and KYC application, Pega Know Your Customer for Financial Services is a utility component that delivers the core dynamic questionnaires that implement and enforce regulations, policies, and procedures by geography, line of business and product. These questionnaires, also known as KYC Types, facilitate the collection of the relevant customer due diligence information in order to ensure compliance with local laws and regulations like AML/CTF Rules, FATCA, CRS, and MiFID II.
This article describes how to configure the Pega Know Your Customer Engine, a set of generic industry-agnostic capabilities which financial institutions can use to either extend or maintain the KYC Types that Pega Client Lifecycle Management and KYC provides, or to create KYC Types of a different nature, in order to support their business needs.