2.2 KYC Workflow

The following figure shows the workflow for existing customers:

Figure 2-1 KYC Process Flow for Existing Customers


Description of Figure 2-1 follows
Description of "Figure 2-1 KYC Process Flow for Existing Customers"

The following section describes the process flow:

  1. The customer is onboarded based on the risk score. For more information on the Onboarding process, see KYC Onboarding.
  2. Customer data is moved from the data warehouse to the processing area using BDF or T2T. This data can be account data, information related to alerts, or information specific to KYC cases.

    All data is not moved to the processing area. It is moved using certain prefiltering rules, such as accelerated re-reviews, periodic reviews, and account Onboarding. The prefiltering rules identify a set of customers due for review depending on these rules.

  3. The processing area contains the data of all customers for whom the prefiltering rules apply and for whom risk scoring needs to be done.
  4. The prefiltered customers are scored using two risk assessments to get the risk score on the customer attributes: Algorithm-based risk assessments and Rule-based risk assessments. The risk score is the maximum of the Algorithm-based risk score and Rule-based risk score.
  5. A risk assessment record is created for each customer who is scored. The risk assessment contains data such as the risk score, risk assessment history, and customer review details. Based on the risk score, the risk assessment can either be closed or promoted to a case.
  6. A risk assessment is considered for a promotion to a case under the following conditions:
    • The customer's effective risk score, or the risk score, is beyond the threshold defined for due diligence.
    • The watch list score of a customer is beyond the limit defined.
    • The customer matches a rule defined for Rule-based risk assessments irrespective of the risk score.

    Note:

    If the effective risk score of a customer is 0 or 0.5, a risk assessment is not created.

    The cases are investigated in Enterprise Case management (ECM). The KYC system moves the risk assessments which meet the above criteria as Events to the ECM layer along with the risk scoring data, the interested party identified for the customer, and the rules met by the customer with the details of the customer and account which is used for risk scoring.