Know Your Customer (KYC) Framework

Rules-Driven KYC Compliance for Financial Institutions and Insurance

Companies

Key Challenge Improving compliance with complex global

ffFinancial institutions (including retail, wholesale, private regulatory requirements and time to revenue while
and investment banks, and securities and capital markets ensuring agility as risks and requirements change
firms) and insurance companies are required to manage In a global compliance environment with increasingly complex
complex global KYC requirements that are geography-, product and organizational structures, financial institutions
customer- and product-specific. and insurance companies continue to struggle with identifying
ffIncreased time to onboard and transact with customers, ways to manage the cost of compliance while significantly
due to manual KYC processes, has resulted in loss of improving their internal controls and minimizing their time to
opportunity (time to transact) and account abandonment.
transact with new and existing customers. The KYC compliance
ffManual KYC processes have resulted in noncompliance
process becomes an operational challenge; it often delays the
and long onboarding times, including repetition of
time to onboard and transact with new and existing customers,
documentation requests for existing customers.
as back-office operations staff and sales officers try to ensure
ffThe lack of agility in changing risk ratings and KYC
compliance with increasingly complex regulations. The complexity
processes by product, geography and customer type
has resulted in increased regulatory scrutiny and continues to increase as new products, geographies and risk
noncompliance. profiles are added.
ffGlobal financial institutions and insurance companies
find it difficult to manage processes to ensure
compliance and manage onboarding time as regulations
and risks change.
ffFew institutions have automated, rules-driven KYC
processes that are localized by product, geography
and risk.

The Solution
Pegasystems’ KYC Framework streamlines KYC processes
and enforces organizational best practices to ensure
compliance with global and regional requirements.
Intent-driven user interfaces guide staff through required
processing activities based on customer, product, geography
and risk rating. Built on Build for Change™ technology,
Pegasystems’ KYC Framework is easily modified and
extended to support new business and regulatory
requirement changes.

Key Features
Common KYC Platform
ffEnables prioritization and routing of due diligence
activities between multiple users on one common
platform with SLAs and escalation processes to ensure
timely and accurate evaluation
ffAllows for specialization by country, line of business and
product-specific KYC and Enhanced Due Diligence (EDD)
compliance requirements
ffEnables reuse of existing due diligence and KYC
documentation globally, displaying existing vs. required
due diligence, ensuring consistency in due diligence while
minimizing time to transact
Dynamic Risk-Rating Engine
ffCustomizable rules automatically assign risk rating
based on customer, product, geography and regulatory
requirements
ffIntent-driven workflows drive required KYC and EDD
activities (e.g., data collection processes) based on risk-
rating drivers and customer profile
ffAutomatically recalculates overall case and customer risk
during the life cycle of the customer profile and drives
additional KYC requirements
ffConfigurable risk-rating tables allow for reclassification
of variables and addition of new risk types by authorized
business and technical users
Rules-Based Workflow
ffRules-based process management automatically
prioritizes and drives required KYC activities based on
customer, product, geography and risk rating
ffConfigurable KYC processes including risk evaluation,
drivers for requirements by KYC type and entity data
gathering
ffSupports specialized policies and procedures by region
and product while enforcing common best practices
across lines of business and geographies
ffDynamic configuration of KYC business components (e.g.,
“Applies When,” “Required When,” ”Complete When”)
allows policies and procedures to be easily reused and
maintained
KYC Investigation Tools
ffVisual representation of corporate structures
ffIntegration to Web services (e.g., Google Maps, due
diligence tools)
For more information, please contact your Pegasystems representative, visit us on the Web at www.pega.com, or email us at
info@pega.com. © Copyright 2010 Pegasystems. All rights reserved.
Know Your Customer (KYC) Framework
Predefined Object and Data Models
ffOrganizes KYC data into reusable and extensible case and
folder structures that maintain all KYC information for an
entity’s KYC profile
ffSupports creation of references to various KYC document
requirements with integration to third-party content
management systems
ffEasy integration with legacy client information and
onboarding systems
ffEasily extended to “Know Your Employee” and “Know Your
Broker” requirements
Management Reporting
ffOut-of-the-box reporting on key operational risk metrics,
including timeliness, volumes and trending
ffCustomizable management dashboards that support drill-
down to case detail
ffReal-time reporting wizard to build custom reports
Real-time Audit Trail
ffTime-stamped audit history of manual and automated
steps taken during evaluation, including related
documentation
ffAudit trail of all system changes, including rules and
workflow
ffHistory of KYC cases stored in profile for future reference
and reporting
SLAs
ffConfigurable service-level agreements ensure that
processes are managed within regulatory and internal
control time frames
ffAutogenerate and drive cases for re-evaluation of due
diligence, documentation and high-risk customer review
Key Benefits
ffEnsure 100% processing completeness, accuracy,
timelines, and compliance with global and regional
regulatory requirements
ffMinimize onboarding time to improve customer
satisfaction and reduce account abandonment
ffAutomate enforcement of consistent KYC practices
ffSpecialize policies and procedures for regional and
product-specific requirements
ffPatented Build for Change® technology enables rapid
deployment, modification and extension to manage
changing risks and regulatory requirements
2010-12