Automated Client Onboarding for Banks - Oracleocom/documents/webcontent/484992...Automated Client...

Automated Client Onboardingfor BanksOracle SOA & BPM Seminar, August 31st, 2011Excellence in Compliance and Document Management

Excellence in Compliance and Document Management

Excellence in Compliance and Document Management for 24 years and into the future…

• Founded in Switzerland in 1987• Profitable and independent for 24 years

• Customers in more than 45 countries• Headquarter in Givisiez / Switzerland

– Offices:• Vienna

• London

• Athens

• Singapore

– Key Partners– Actimize– Assentis Ltd. – Oracle– Tonbeller AG

Aug. 2011


IMTF’s value added is based on its financial services industry focusand experience in both Product Development and Project

Implementation

• Focussed offering in ECM and Compliance:“deep & narrow” vs. “broad & shallow”Integrated in your (banking) processes

• In-house developed “State-of the-Art” products for more than 23 years:Hyperdoc / Hypersuite / ZVx / etc.

• Integrator of complementary “Best-in-Class” solutions:DocFamily / SironXX / Oracle UCM / etc.

• Over 600 successful projects with proven expertise in complex technologies & productsIT integration and automation

Aug. 2011


Today IMTF is the leading partner for Content Management and Compliance applications for more than 200 Banks (80+ in CH)

Aug. 2011


“Client Onboarding for Banks” is an application to evaluate and manage the customer’s risk at the account opening stage:

• Customer due diligence: comply with regulations

• KYC (“Know-your-Customer”): relevant and sufficient information about the potential new client

• Integrated Checks: against sanction lists, PEP databases, etc.

• Process & control: rules, actions, audit, documentation

Aug. 2011


This application is part of IMTF’s SironAML-Suite - a comprehensive and true end-to-end Anti Money Laundering Solution

Aug. 2011


The application is offering a rich functionality for identificationand verification of a client and its risk:

• Professional tool for developing and layouting dynamic “Know Your Customer”customer acceptance questionnaires

• Customer information capturing including situation-depending variants for the questionnaire and real time Risk Rating

• Interfaces to 3rd party applications such as CRM, Core Banking System, etc.

• Watchlists, Blacklists and Sanctions List scan and PEP screening

• Configurable workflow

• Business rules for risk rating and actions to be taken

• Deadline expiration management (e.g. ID expiration)

Aug. 2011


The (ongoing) Customer Risk Rating is calculated on factual information such as customer identity information, behavior

related and transactional elements:

Risk ScoringCustomer Identity Customer

BehaviourRelationships

Identity discrepanciesGeographic locationsOFAC screeningPEP screeningOccupation / business

…

Customer historyDocumentation statusAccount behaviourChannels usedPrevious SARs filed

…

Ownership structuresBeneficiaries Signature rightsLink analysisLogical entities

…

Internal Data

External Data

Analytics

Risk Rating

High

Medium

Low

Risk based reviews & surveillance

Aug. 2011


The main function of SironKYC is a flexible rule & policy authoring tool with individually definable risk levels and

actions:

Every 5th Year

Every 2nd Year

Every Year

?

3rd Party Application

Risk Rating

(can be defined individual)

Flexible KYCQuestionnaires and Business rules/actions

Unacceptable

High

Medium

Low

PEPCheck

SanctionsWatch Lists

BadPress

UltimateBeneficial

Owner

CustomerIdentificationProgram (CIP)

Customer not approved

Customer approved

Account Opening

ContinuousInvestigation

BlacklistCustomer

Aug. 2011


The basis of this automated process is structured information (from the KYC questionnaire) about the customer:

Aug. 2011


SironKYC includes an “easy build” tool for the developing and layouting of such KYC questionnaires

Aug. 2011


During the onboarding process the application automatically performs checks against chosen watch/sanction lists, PEP

databases, …

• All applicable embargo regulations and legal requirements in order to identify “PEPs” (Category of high risk customers) are covered

• PEP risk segment is critical because several national regulations require its identification among your customers

• Standard interfaces to commercial PEP database providers (including World-Check, Dow Jones/Factiva, WorldCompliance, …) are available

• SironKYC PEP module provides this functionality by screening your customers’database through “your” watch-list

Aug. 2011


The integration of SironKYC into your environement is comprehensive, both from a logical perspective as well as ……

Business & organization

Know your Customer (KYC)Customer Acceptance

Risk Assessment

Research

Security & Technology Usage

Trai

ning

& A

war

enes

s pr

ogra

m

Man

agem

ent C

omm

itmen

t

?

Statistics /Lessons learned

Processes Initiatives Policies …

EnhancedCDD

SimplifiedCDD

WLMMarketAbuseAnti-FraudAML/CTF

Database/ListProviders

PEP

WL/Sanction lists

Stock Information

Risk & ComplianceCockpit

Case Management & Reporting

(…)

Aug. 2011


……. from a technical integration into an existing environment (via Web Services):

Siron®KYC 3rd PartyApplication

(Existing) Customer Acceptance System

Scenario A: SironKYC looks after the entire customer acceptance process

A

Scenario B: SironKYC looks after the screening process (as web service)

B

PEP List

Sanctions & WL

Blacklists (…)

Scenario C: KYC questionnaire is called via URL

C

Aug. 2011


As a result, SironKYC ensures that new customers do not pose an unacceptable risk to your bank and provides the base for

ongoing Risk Rating

A. Dynamic KYC questionnaireB. Check against watch listsC. Collect documentsD. Enter expiration date ID

documentationE. Use of 3rd party applicationsF. Ultimate beneficial ownerG. Parent treeH. Escalation; EDD, 4-eyes principle

I. Deviation actual transaction behaviors with stated

J. Change of non-financial elements, country, etc

K. Calculate new risk level, if increased generate alert

L. Create alert for Compliance/Account manager

M. Assign to employeeN. Perform EDD, 4-eyes

principle

O. Create alert for Compliance/Account manager

P. Assign to employeeQ. Collect new documents, add

new expiration date

Ongoing customer due diligence (Siron®AML)Account Opening (Siron®KYC)

1

Account Opening

2

Determine initial risk(A - H)

3

Customer approved/not approved

4

Monitor customer behavior

5

Check statedbehavior with actual

6

See [5]

7

Change in customer behavior compared to stated

8

Re-Calculation of the risk(I - K)

9

Increase Risk (L - N)

10

Expiration dateidentificationdocuments(O - Q)

11

continuous control monitoring

Aug. 2011

Automated Client Onboarding for Banks - Oracleocom/documents/webcontent/484992...Automated Client...

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