When an individual or legal entity is involved in various aspects of a business, know-your-customer (KYC) processes can be at increased risk.
RegTech startup Aqubix offers its KYC Portal to help businesses with the end-to-end due diligence and KYC process. Its services support everything from on-baording to risk assessment, document requirements, and workflows, and others.
Aqubix: It has become a common occurrence that a subject (be it a legal entity or a human being) is involved in multiple aspects within an organisation. An entity which is being serviced for different products or services would usually lead to multiple records of the subject and also multiple KYC processes leading to inefficiencies and also increased risk. KYC Portal allows you to benefit of such occurrences to improve efficiencies and reduce risk exposure.
Companies experience such involvement of subjects across industries in various forms. An investor within Funds arms of a bank who is also a retail customer and also involved wearing different hats under an organisation in institutional banking. A holding corporate structure that appears multiple times behind various trusts. An individual in the gaming industry who is involved in multiple brands across the markets. This aspect of having the same entity being present in multiple forms and representations can lead to severe risk and inefficiencies unless handled centrally.
KYC Portal has released services which cater for such scenarios in various ways namely:
It allows you to create the entity once and be able to link it to several involvement structures across services and programmes. This would also allow you to store different data fields based on the type of involvement and also setting the fields that can be shared across the products or services.
Centralises the update of common data. Example of which, is that should the subject inform the retail office that the address has been updated, the system allows you to update the address of the respective subject across all the applications that the they are involved in constantly ensuring that the record is centralised and that you always have a true updated copy of such details across the organisation.
Associate document types to the entity in question so you do not need to ask for such documentation ever again even if the subject appears under a new structure in the future. Example is the proof of ID and proof of address on human beings. Such document types are linked to the subject “across entities” allowing the document to move with the subject wherever they are across the system. This reduces the need to ask for documentation on existing subjects (since you already have it) and also reduces the risk of owning the same document in multiple departments.
Centralise the data checks on a subject irrespective of how many times that subject is involved across the company. Centralising the subject allows you to streamline the checking for PEPs, Sanctions and Adverse Media to happen once on a subject and the result of which being applied to all the involvement of that subject across the system.
Conduct one face to face interview to audit the verification of the subject once and have the audit move with the entity so that all risk on the subject is reduced across all involvement.
All of the aspects above are focused on streamlining all actions on a subject irrespective of involvement leading to increased efficiencies and reduced risk all throughout the relationship with such subject.
For Aquibx’s full profile click here:
Copyright © 2018 RegTech Analyst
