2.1.1 Definition of Customers or Interested Parties

KYC considers the following types of customers for the risk scoring and due diligence processes:

  • Primary Customer: The customer on whom the risk assessment is being carried out.
  • Interested Parties: KYC classifies the following types of interested parties, the level of interested parties to be considered are configurable.
    • Customer to Customer Relationship: Customer who has a relationship with the primary customer through friends, colleagues, or relatives. This relationship is not required to have a controlling role on the account held by the primary customer.
    • Customer to Account Relationship: Customer who has a controlling role in the account held by the primary customer.
    • Beneficial Owners: FINCEN has made it mandatory to capture, validate, and monitor the ultimate beneficiary of an entity. To meet this requirement, the Oracle Financial Crime and Compliance Management (FCCM) data model has been extended to capture the information of the beneficial owners for both customers and non-customers of the institution and process the data for risk scoring and display this information in the User Interface (UI). This model also helps to capture the secondary business units between the parent and the beneficial owner, if any.

The KYC system captures the beneficial owners who are non-customers, that is, external parties. Some of the data elements of beneficial owners are captured according to regulations for non-customers, as follows:

  • Customer Name
  • Date of Birth of the Customer
  • Address of the Customer
  • Identity Details of the Customer

For the entire list of data elements, see the party to party relationship table in the Financial Services Data Model Reference Guide, Volume 1: Business Data .

Note:

  • All categories of interested parties listed above are considered for watchlist risk factors and the maximum of the scores is considered as one of the risk factors of the primary customer for whom risk scoring is being done. The relationship of these can be viewed on the UI in the interested party section.
  • Watchlist is considered using fuzzy name matching or OFS Customer Screening (CS), depending on which is selected for an installation.