Clari5 Customer Due Diligence

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Overview

Clari5 provides Financial Institutions a complete lifecycle assessment and re-assessment of customer risk as part of know your customer (KYC) applicant on-boarding and ongoing customer due diligence processes. The solution streamlines money laundering risk assessment, improves customer understanding, and allows firms to better identify, manage, and mitigate customer related risks.

KYC generally refers to the steps taken by a financial institution to establish the identity of a Customer and be satisfied that the sources of the Customer funds are legitimate. This includes:

Customer Identification Program.

Customer Due-Diligence – CDD is information obtained for all Customers. Information obtained for CDD should be used to verify the identity of a Customer and assess the risk associated with the Customer.

Enhanced Due Diligence – EDD refers to additional information that would be collected for those customers deemed to be of higher risk.

Key Features

How Clari5 works: during On-boarding:

  • Integration with the On-boarding System – Clari5 can integrate with the existing onboarding system to capture the Customer Information
  • Customer Risk Categorization (CRC) – Risk scoring for new on-boarding customers and ongoing basis, based on the money laundering risk for CDD/EDD. Comprehensive Risk Scoring framework using Demographic profiles, Geographic, Product Subscriptions, Watch List Matches, etc.
  • Configurable Questionnaire Template during on-boarding – Based on the Customer Risk Identified by Clari5, there can be additional Interactive and dynamic forms and questionnaires that can be taken from the Customer
  • Capture and maintain multiple Beneficial Owner Information for New Accounts and established Customers
  • Document Collection (based on CRC) along with expiry date
  • Check against Various list/Sanction Screening against Customer and Beneficial Owner information – Clari5 enables real-time identity verification, negative news search and understanding of directorship and beneficial owners for better decision making:
    • Integration with external private company data providers like D&B, Bureau Van Dijk, etc.
    • Comprehensive List Management: Supports lists from various list providers including Accuity, Dow Jones, and World-Check as well as custom internal lists maintained by the organization
    • Integrate with 3rd party tools for Customer’s various personal data verification
    • Intuitive User Interface for List Rule Configuration: Supports web based
    • Advanced Identity Resolution Analytics Engine supports fuzzy and exact match algorithm for fields
  • Case Creation and Reporting – Integrated case management for manual investigation of AML cases/incidents detected by Clari5. Intelligent case routing features to the right investigator, built-in work flow for case investigation and closure with complete evidence and audit trail.

How Clari5 works: Ongoing CDD:

  • Further Risk Categorization on an on-going basis based on Demographic profiles, Geographic, Product Subscriptions, Transactional behavior profiles, Watch List Matches, CTR/SAR filed. Systematic re-assessment of customer risk is performed on an ongoing basis, leveraging an extensive library of out-of-the-box and user defined risk factors, as characteristics change, use of products evolves, and business environments adapt. Capability to configure the frequency of re-risk rating (weekly, monthly, quarterly) based on bank’s business policies
  • Screen against incremental list data and customer profile change
  • Identification of AML Red-Flags based on Clari5 out-of-the box and user defined scenarios
  • Comprehensive investigation capabilities within the Clari5 Case Management System:
    • Case Creation and workflow management
    • Case Assignment to branch for further due-diligence
    • Investigation tools and Link Analysis
    • Feedback loop on the actual case resolution status from the case management system so that the intelligence can be built and applied for subsequent false positive reduction and increase fraud detection rate
  • Notification on KYC document expiry captured during On-boarding
  • Regulatory Reporting and MIS Reports

Key Benefits

SAMPLE RED FLAGS TO IDENTIFY HIGH RISK CUSTOMERS

CUSTOMER DEMOGRAPHICS

Profession/Occupation -

• Politically Exposed Persons

• Non-Resident

• Money service businesses (e.g. check cashing, wire transmitter)

• Real estate, Construction

• Gaming & betting

• Jewelry business

• Law, accounting and medicals firms

• Off-shore trusts

• Others

→ HNI Customer

→ Credit Score

→ Declared Income/Turnover

→ Purpose of Account Opening

→ Minor/Senior Citizen

GEOGRAPHY

→ Sanctioned list countries / NCCT (Non-Cooperative Countries and Territories)

→ Transaction activity with high risk countries (e.g. 311 USA Patriot Act and FATF)

→ High Risk Cities/Regions (Domestic)

PRODUCT/DELIVERY CHANNEL

→ Private Banking, Trust, Commercial, Retail where it involves high net worth individuals and their corporate interests with personal and discrete service

→ Internet/Mobile Banking Enabled

→ Prepaid stored valued card/Credit Card Available

TRANSACTIONAL BEHAVIOR PROFILES

→ Transaction Types – Offshore, Foreign wire transfers, E-Bill Payments, Correspondent bank clearing

→ Customer Relationship in days

→ Number of CTR/STR filed

→ Total Cash Transaction as percentage of total Transaction

→ Total Credit Transaction as percent of the declared turnover of the Customer

→ Transaction from High Risky Branch/ ATM/ Merchant

→ Count of declined Transactions

→ Average value of transaction

→ Average count of transaction