Key aspects of the Amendments are:

The introduction of the Risk Management and Compliance Programme (RMCP).

The extension of the Know-Your-Customer (KYC) obligations.

RMCP

RMCP is an articulation of the procedures that the accountable institution will employ to satisfy its KYC obligations and KYC compliance under the new amendments. This ensures that the accountable institution adheres to its own RMCP design, as well as ensuring that the RMCP design is in sync with international AML requirements.

Know-Your-Customer (KYC) obligations

The amendments have substantially extended the KYC obligations, particularly where trusts, partnerships and juristic persons (a human being (natural person) or a group of human beings, a corporation, a partnership, an estate, or other legal entity (artificial person or juristic person) recognised by law as having rights and duties) are concerned, whereas previously the KYC duty was confined to the identification of the client and the confirmation that it exists.

Accountable Institutions must dig deeper and inquire into matters such as the nature of the client’s business operations, and the identity of its ultimate beneficial owner (UBO), being the natural person who ultimately benefits from the client’s assets and profits.

A Business entity consists of the entity itself, as registered with the companies registrar, as well as associated individuals (natural persons), whether principle members (Directors), Trustees, UBO’s or other parties identified by board-resolution (Signatories), all of which are catered for by the System. Although similar in approach, the business entity has certain verification requirements that are different in comparison with that of a natural person. The business entity process explodes into multiple verifications for each associated natural person (Directors, UBO’s, Signatories, etc).

The business itself is therefore subject to verification methodologies designed to verify the entity, including natural persons linked directly, or by association, to that entity. Each natural person associated with the business entity is individually verified. Sole Proprietors that are classified as business entities are verified as natural persons.

KYCFactory can be triggered from any website or forms-based front-end, ESB, rules engine or workflow engine that has the ability to communicate via web services. The triggers are sent via the SigniFlow Event Handler to the KYCFactory platform that then either follows a built-in configuration of events (“IF-THEN” rules for pass and fail events), or every event is communicated back to the origination platform via the SigniFlow Event Handler, enabling it to query its own rules and sequences in order to trigger further events individually, as  micro-components.

KYCFactory software is delivered in two main process-components, defined as Identity Kits “IDK”, namely Business IDK and Consumer IDK.