We help banks, insurance companies and financial service providers automate their decisions. An example of IT-based decision-making is the risk assessment of new aspirants and customers according to the know-your-customer principle. Running effective KYC programs and classifing risk is crucial for fulfilling Customer Due Diligence requirements.
Know Your Customer (KYC) is a building block for managing the compliance risks of any financial
institution and insurance company. KYC identity checks are performed regularly for new aspirants and existing
requirements include identifying the contracting party, determining the
beneficial owner and clarifying the economic background. The KYC profile and risk classification are crucial for Customer Due Diligence (CDD).
The KYC profile is an electronic form in which all the required information about the customer is recorded, maintained and managed. It contains important information about the business relationship or the UBO (ultimate beneficial owner). This information is relevant when assessing the plausibility of customer behavior and is thus relevant to customer due diligence. Thanks to complete electronic case handling, documentation and historicizing, all steps are also retrospectively traceable and can be retained for auditing purposes.
The information in the KYC profile is decisive for the customer's risk classification and Customer Due Diligence (CDD). Each business relationship is governed by different logic. The logic depends on whether the customer is engaged in private, retail or corporate banking, or whether the customer is an institutional investor or broker. With ACTICO software, you are taking all KYC aspects into account and classify risks of your business relations reliably.
Naturally, separate business conduct exists for the various banking activities. For example, high inflows and outflows of funds are typical of corporate accounts. For a personal account, this transaction pattern would be unusual and would thus be classified as a potential risk. In assessing the risk for a customer or business relationship, potential risk factors need to be considered: country risk, transaction behavior, legal status, financial standing, industry, politically exposed person (PEP).
Machine learning helps to accelerate and improve client onboarding and customer due diligence (CDD). By providing the customers’ risk classification, Machine Learning supports compliance with fulfilling KYC and AML regulatory requirements.