Fenergo, which offers KYC and client lifecycle management solutions, has released a new perpetual KYC solution to streamline periodic review processes.
The new solution, Fenergo Smart Review, automates the continuous monitoring of client profiles for KYC compliance by identifying all changes to relevant entity data, transactions and AML screening.
It claims the tool uniquely assesses the risk impact of these changes to client circumstances, whilst automatically determining relevance and materiality. Through this, lower-risk cases can be quickly processed, while the higher-risk cases are prioritised for enhanced due diligence by an analyst.
Fenergo offered an example. A change in beneficial ownership to a sanctioned individual or the appointment of a new exec deemed to be a politically exposed person (PEP), are automatically assessed to determine risk exposure and where human intervention is required.
Fenergo chief strategy officer Stella Clarke said, “The requirement to complete ongoing KYC reviews manually for a bank with hundreds of thousands of clients presents a huge and costly operational burden, particularly when genuine key risk factor changes are minimal.
“With Fenergo Smart Review financial institutions can streamline the KYC review process by automating the continuous monitoring of clients. This ultimately improves operational efficiencies, while reducing operating costs and regulatory risk.”
Perpetual KYC is becoming a rising trend in the compliance space. FinTech Global recently spoke to several RegTech companies about the new technology.
Clark Frogley – financial crimes solution leader at Quantexa – said, “Financial institutions must shift from reactive to event-driven regulatory reviews to ensure successful risk management processes – and PKYC provides a solution to managing risk more effectively throughout the customer lifecycle.” Read the full article here.
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