Know Your Customer 7.21 STANDARD DEMONSTRATION GUIDE

Transcription

1 Know Your Customer 7.21 STANDARD DEMONSTRATION GUIDE

2 Copyright 2016 Pegasystems Inc., Cambridge, MA All rights reserved. Trademarks For Pegasystems Inc. trademarks and registered trademarks, all rights reserved. Other brand or product names are trademarks of their respective holders. For information about the third-party software that is delivered with the product, refer to the third-party license file on your installation media that is specific to your release. Notices This publication describes and/or represents products and services of Pegasystems Inc. It may contain trade secrets and proprietary information that are protected by various federal, state, and international laws, and distributed under licenses restricting their use, copying, modification, distribution, or transmittal in any form without prior written authorization of Pegasystems Inc. This publication is current as of the date of publication only. Changes to the publication may be made from time to time at the discretion of Pegasystems Inc. This publication remains the property of Pegasystems Inc. and must be returned to it upon request. This publication does not imply any commitment to offer or deliver the products or services described herein. This publication may include references to Pegasystems Inc. product features that have not been licensed by you or your company. If you have questions about whether a particular capability is included in your installation, please consult your Pegasystems Inc. services consultant. Although Pegasystems Inc. strives for accuracy in its publications, any publication may contain inaccuracies or typographical errors, as well as technical inaccuracies. Pegasystems Inc. may make improvements and/or changes to the publication at any time. Any references in this publication to non-pegasystems websites are provided for convenience only and do not serve as an endorsement of these websites. The materials at these websites are not part of the material for Pegasystems products, and use of those websites is at your own risk. Information concerning non-pegasystems products was obtained from the suppliers of those products, their publications, or other publicly available sources. Address questions about non-pegasystems products to the suppliers of those products. This publication may contain examples used in daily business operations that include the names of people, companies, products, and other third-party publications. Such examples are fictitious and any similarity to the names or other data used by an actual business enterprise or individual is coincidental. This information is the property of: Pegasystems Inc. One Rogers Street Cambridge, MA USA Phone: (617) Fax: (617) Know Your Customer Document: Standard Demonstration Guide Software Version: 7.21 Updated: June 2016

3 CONTENTS Getting started Sign-on and dashboard navigation Pre-demonstration setup Demonstration Part 1 Navigating the KYC manager portal Customer search Responsive UI Demonstration Part 2 Manual case creation Eurotech - sample driver data and applicable types Create new business onboarding case with related party sub-case Create new business onboarding case for individual Eva Smith - sample driver data and applicable Types Demonstration Part 3 The KYC profile Locating and navigating profiles KYC review feature Hierarchy visualization tool Node icons Tools gadget Demonstration Part 4 Rule manager portal Demonstrate KYC rule creation and the rule manager portal

4 Getting started Demonstration back story: When new customers, accounts and products are onboarded at a financial institution, due diligence must be performed before the accounts can be transacted against or before the institution can begin its business relationship with the client. Among other features, this script demonstrates how the KYC system dynamically selects and applies regulatory data capture processes when new accounts, products and customers are onboarded at a financial institution. Assumption: When demonstrating manual case creation, the assumption is made that customer and account data already exists in systems of record. The user walks through the process of selecting pre-existing customer, account, product and related party data required for KYC evaluation. The assumption is also made that a single user will be presented all applicable due diligence requirements for completion. In a production environment, it is expected that multiple cases with unique KYC requirements will be created and assigned to various operators in one or more workgroups. Important: When demonstrating KYC as a stand-alone system, KYC does not demonstrate the intricate processes and steps required for collecting onboarding data (account setup, product selection, etc ) for various lines of business such as investment banking or commercial lending. It is expected that upon implementation, the KYC system will be extended and/or integrated with Pega-based and non-pega based onboarding systems that serve as the entire end-to-end onboarding and due diligence process. Sign-on and dashboard navigation 1. Sign on as Diya.Cleveland@fsi.com > password: install Diya is the KYC Analyst Manager with super-user access. Know Your Customer Standard Demonstration Guide 1-1

5 2. The KYC Analyst Manager portal provides a super-user view with access to all charts, reports, cases and Pega case management features. 3. The following diagram details key features and tools available on the KYC Analyst Manager dashboard Navigation Dashboard Default view for KYC Manager sign-on My Work Contains worklist of active cases and all workgroup team members with cases assigned to them when file import case creation is initiated Calendar Useful for explaining how KYC Cases with SLA s will display in the calendar to ensure cases are managed and worked in a timely manner Reports Provides pre-configured KYC and FATCA reports available to KYC Managers for re-use and extension 2. Create + Use this action to create manual new business onboarding cases 3. Search and Operator ID Search for Profiles, sample customers and cases using Pega s default search tool Important Work Indexing must be run in order to use the search feature. - Sign on as kycfssyadmin / install - Go to Designer Studio > System > Settings > Search - Enable the All Work Index type and press Re-index 4. Dashboard Charts Know Your Customer Standard Demonstration Guide 1-2

6 Six re-usable and extendable charts and graphs are provided to showcase Pega s interactive data visualization 5. Demo Tools Automated cases Use this feature to import.csv files containing sample data to create cases and populate the dashboard FATCA IRS report Use this feature to demonstrate how the system can retrieve FATCA data and format the data in xml for IRS reporting Due diligence report Use this feature to extract customer due diligence data from the database and output to an Excel file. KYC Type Inventory Use this feature to create a report that lists all pre-configured due diligence questions and questionnaire forms in the system. Delete sample cases - Use this feature to delete all sample cases and customer profiles. This feature is used to demonstrate the system from a refreshed state. Pre-demonstration setup Important! - The following steps can be performed prior to or during live demonstration to showcase file import and case creation assets provided in KYC and the Pega7 platform. 1. Open Demo Tools on the dashboard. 2. Select the New Business Onboarding import file and the Open button displays. 3. Click Open to access the sample file used for data import and case creation. 4. In the Binary File rule form, click Download File and to download and view the csv file. Know Your Customer Standard Demonstration Guide 1-3

7 5. The.csv file opens in Excel to display the sample data used by the system to create cases. Discussion points: Data model, file format and parsing rules included in the KYC for FS application can be modified to accommodate client s specific data requirements Different formats can be used (xlsx, csv, tab delimited, xml, etc ) File can be maintained by the client and processed by a system agent or other automated process Although file import and parsing functionality is ideal for quickly populating the KYC Manager dashboard for demonstrations, this feature also highlights the system s ability to use data for batch/bulk case creation. This has many uses for production implementations and would typically be run using an automated process. 6. Return to the Dashboard and open the Demo Tools gadget. 7. Click the Run button to start the file import process. Know Your Customer Standard Demonstration Guide 1-4

8 8. In Progress icon will display and when the import is finished, the dashboard will refresh to show the dashboard charts populated with data. 9. Perform the same steps for the FATCA sample file by navigating to Demo Tools, select the FATCA file in the dropdown list and click Run. 10. The dashboard charts will populate with additional Profile and Case data. These charts showcase both Pega 7 chart and reporting technology as well as pre-configured assets in the application. 11. If you need to refresh the database to clear the dashboard of all cases and data, expand the Demo Tools gadget and click Delete sample cases. Know Your Customer Standard Demonstration Guide 1-5

9 12. Press Submit when prompted to clear any existing sample work objects and data from the system. 13. The Dashboard will refresh and display no cases or data when complete. Know Your Customer Standard Demonstration Guide 1-6

10 Demonstration Part 1 Navigating the KYC manager portal Sign-on as diya.cleveland@fsi / PW: install The initial dashboard is the first part of the system the audience will see so there are several key assets and pieces of functionality that should be demonstrated. Time permitting, each browser (Dashboard, My Work, Calendar, Reports) in the KYC Manager portal should be touched on. Dashboard Each chart has a description detailing its purpose Each chart provides Chart Actions to open the source report and access and open Profiles or Cases - Each report has a filtering condition which allows the conditions to be modified in real-time Pie charts are exploding. Click any of the grouping values to explode the value s shape in the chart As cases are processed and Items are completed, data will populate the Active cases - % of completed due diligence report You can run the file imports again to generate more cases which will set threshold colors in the Active cases per analyst report Know Your Customer Standard Demonstration Guide 2-1

11 My Work This is the KYC Manager s view of all Cases for all team members in the workgroup When the file imports are run and cases created, cases are auto-assigned to Team members Click and drag a case from the Urgent Work list to the right and into Diya Cleveland s queue. (The transfer will occur when you see case assignment label change to Diya Cleveland ) These are default Pega case management layouts and tools and should be discussed to showcase Pega s case mgmt. technology Calendar Assigning work to Diya Cleveland in the previous section makes cases visible in Diya s calendar The Service Level Agreement (SLA) set for the case(s) (1 day goal) becomes apparent when the newly assigned cases appear on Diya s calendar This functionality is key when performing due diligence. It prevents work from being missed Double-click any of the items to open the Case Know Your Customer Standard Demonstration Guide 2-2

12 Reports KYC for FS is shipped with pre-configured reports and charts.. The list of reports is a follows: Report Name Purpose 1 KYC Type Rule - Item configuration audit history Gets Item audit history for rule difference comparison 2 Profiles (Retail customer risk change assessment) Helps assess impact when risk factor change is required 3 Profiles (Commercial customer risk change assessment) 4 KYC Profile - New Customer Profiles by Region (MAP) Helps assess impact when risk factor change is required Interactive chart with drill-down to Profiles from Global/regional to country view 5 KYC Reviews - New and in-progress cases Gets newly created and in-progress KYC Review cases 6 Profiles (Upcoming KYC Review - 30 Day Outlook) Gets customers with upcoming KYC Reviews within the next 30 days 7 FATCA - Summary of Acct Holders and IRS Reporting Codes Gets account holders and their FATCA IRS reporting codes from the Profile 8 Profiles (Opened today in Europe by country) Displays map of Europe with count of new Profiles opened by country 9 Profiles (Opened Today by Risk) Distribution of new Profiles opened today by Risk 10 Profiles (Distribution Opened Today by World Distribution of Profiles opened today by world region Region) 11 Profiles (opened today - northern Europe) Profiles opened today for northern Europe countries 12 KYC Cases (In-Progress Due Diligence Cases per Analyst) Gets count of in-progress due diligence cases for each analyst 13 KYC Cases (Active Cases by Type) Distribution of active KYC cases by type. 14 KYC Cases - Pct. of Required Due Diligence Data Collected Active cases with % calculation of collected due diligence data Know Your Customer Standard Demonstration Guide 2-3

13 To access the pre-configured reports: 1. Click the KYC Manager Reports link to view the full list. 2. To showcase Pega s chart technology, click the Profiles (All by region, country and risk MAP) report link. 3. A global map showing count of Profiles opened for the region displays. 4. Click on a region to drill down to the country. Know Your Customer Standard Demonstration Guide 2-4

14 Customer search Important! Sign on as KYCFSSysAdmin / install to enable and execute indexing prior to using the search feature. DesignerStudio > System > Settings > Search 1. Use Pega s default searching features to locate Profiles and Cases by key data values. You can search by: Name Customer ID Customer Type Occupation / Industry Case ID Profile ID And many more. 2. In the search field, enter a value and click the magnifying glass icon or press the Enter key. 3. All Cases and Profiles meeting the search criteria display. Responsive UI 1. KYC manager dashboard accommodates different resolutions and devices via Pega responsive UI technology. 2. You can re-size browser to show how dashboard adjusts to fit content. Know Your Customer Standard Demonstration Guide 2-5

15 Demonstration Part 2 Manual case creation Manual creation of new business onboarding cases is the primary method of demonstrating pre-built regulatory compliance and Pega case management assets. KYC provides a method of demonstrating various regulatory compliance rules and scenarios by providing the ability to select one or more accounts and associated driver data such as booking location and account type. When creating manual cases for the primary sample entity customer (Eurotech), use the reference information below to understand which regulatory compliance rules will be applied to a case based on selected driver data. Important - If required to demonstrate the system within a short timeframe, then navigate to the My Work browser and open any of the cases from a user s work list to process the case and tell the KYC and/or FATCA evaluation story. These cases have fewer KYC requirements to complete because they have no related party sub-cases and take less time to process. Eurotech - sample driver data and applicable types When creating a case for Eurotech, the following driver data is displayed at the select accounts step: Account Business line Account type Product Booking country Corporate & Investment Banking Investment Cash Management Australia Corporate & Investment Banking Investment Custody Hong Kong Corporate & Investment Banking Investment Trade Finance Singapore Corporate & Investment Banking Investment Trading Canada Corporate & Investment Banking Investment Credit Default Swaps United States Corporate & Investment Banking Investment Mutual Fund United States Corporate & Investment Banking Investment Exchange Traded Derivatives United Kingdom Know Your Customer Standard Demonstration Guide 3-1

16 When this account is selected: Account Business line Account type Product Booking country Corporate Investment Cash Management Australia Investment Banking The system will display these KYC Types in the parent case: Global - AML - Entity CDD Global AML - Entity EDD (displayed when triggered via CDD Item response) AU - AML - Entity CDD AU - AML - Entity EDD (displayed when triggered via CDD Item response) CRS Taxable Entities FATCA Taxable Entities Global AML FFI (displayed when CDD Item Is FFI = YES) Global AML Foreign Correspondent Bank (displayed when CDD Items Is FFI = YES and Role = correspondent Global AML Intermediary FI (displayed when CDD Item Role = intermediary If a related party is selected for this account, then these KYC Types are selected and displayed in the child case: Global - AML - Individual CDD Global - AML - Individual EDD (displayed when triggered via CDD Item response) AU - AML - Individual CDD AU - AML - Individual EDD (displayed when triggered via CDD Item response) CRS - Individual New Accounts FATCA - Individuals Know Your Customer Standard Demonstration Guide 3-2

17 When this account is selected: Account Business line Account type Product Booking country Corporate Investment Investment Custody Hong Kong Banking The system will display these KYC Types for the parent case: Global - AML - Entity CDD Global - Entity EDD (displayed when triggered via CDD Item response) HK - AML - Entity CDD HK AML Entity EDD (displayed when triggered via CDD Item response) CRS Taxable Entities FATCA Taxable Entities Global AML FFI (displayed when CDD Item Is FFI = YES) Global AML Foreign Correspondent Bank (displayed when CDD Items Is FFI = YES and Role = correspondent Global AML Intermediary FI (displayed when CDD Item Role = intermediary If a related party is selected for this account, then these KYC Types are selected and displayed in the child case: Global - AML - Individual CDD Global - AML - Individual EDD (displayed when triggered via CDD Item response) HK - AML - Individual CDD HK - AML - Individual EDD (when triggered) CRS - Individual New Accounts FATCA - Individuals Know Your Customer Standard Demonstration Guide 3-3

18 When this account is selected: Account Business line Account type Product Booking country Corporate Investment Trade Finance Singapore Investment Banking The system will display these KYC Types for the parent case: Global - AML - Entity CDD Global - Entity EDD (displayed when triggered via CDD Item response) SG - AML - Entity CDD SG - AML - Entity EDD (displayed when triggered via CDD Item response) CRS Taxable Entities FATCA Taxable Entities Global AML FFI (displayed when CDD Item Is FFI = YES) Global AML Foreign Correspondent Bank (displayed when CDD Items Is FFI = YES and Role = correspondent Global AML Intermediary FI (displayed when CDD Item Role = intermediary If a related party is selected for this account, then these KYC Types are selected and displayed in the child case: Global - AML - Individual CDD Global - AML - Individual EDD (displayed when triggered via CDD Item response) SG - AML - Individual CDD SG - AML - Individual EDD (displayed when triggered via CDD Item response) CRS - Individual New Accounts FATCA Individuals Know Your Customer Standard Demonstration Guide 3-4

19 When this account is selected: Account Business line Account type Product Booking country Corporate Investment Trading Canada Investment Banking The system will display these KYC Types for the parent case: Global - AML - Entity CDD Global - Entity EDD (displayed when triggered via CDD Item response) CRS Taxable Entities FATCA Taxable Entities CA IIROC Global AML FFI (displayed when CDD Item Is FFI = YES) Global AML Foreign Correspondent Bank (displayed when CDD Items Is FFI = YES and Role = correspondent Global AML Intermediary FI (displayed when CDD Item Role = intermediary If a related party is selected for this account, then these KYC Types are selected and displayed in the child case: Global - AML - Individual CDD Global - AML - Individual EDD (displayed when triggered via CDD Item response) CRS - Individual New Accounts FATCA Individuals Know Your Customer Standard Demonstration Guide 3-5

20 When this account is selected: Account Business line Account type Product Booking country Corporate Investment Credit default swaps United States Investment Banking The system will display these KYC Types for the parent case: Global - AML - Entity CDD Global - Entity EDD (displayed when triggered via CDD Item response) US - AML - Entity CDD US - AML - Entity EDD (displayed when triggered via CDD Item response) US Dodd Frank - Derivatives US FINRA 2111 FATCA Taxable Entities Global AML FFI (displayed when CDD Item Is FFI = YES) Global AML Foreign Correspondent Bank (displayed when CDD Items Is FFI = YES and Role = correspondent Global AML Intermediary FI (displayed when CDD Item Role = intermediary and booking country = US US AML - Intermediary FI (displayed when CDD Item Role = intermediary and booking country = US US - AML - Foreign Correspondent Bank (displayed when CDD Items Is FFI = YES and Role = correspondent and booking country = US US AML FFI (displayed when CDD Item Is FFI = YES and booking country = US) US AML Mutual Fund (displayed when CDD Item type = Mutual Fund and booking country = US If a related party is selected for this account, then these KYC Types are selected and displayed in the child case: Global - AML - Individual CDD Global - AML - Individual EDD (displayed when triggered via CDD Item response) US - AML - Individual CDD US - AML - Individual EDD (displayed when triggered via CDD Item response) FATCA - Individuals Know Your Customer Standard Demonstration Guide 3-6

21 When this account is selected: Account Business line Account type Product Booking country Corporate Investment Mutual fund United States Investment Banking The system will display these KYC Types for the parent case: Global - AML - Entity CDD Global - Entity EDD (displayed when triggered via CDD Item response) US - AML - Entity CDD US - AML - Entity EDD (displayed when triggered via CDD Item response) US FINRA 2111 FATCA Taxable Entities Global AML FFI (displayed when CDD Item Is FFI = YES) Global AML Foreign Correspondent Bank (displayed when CDD Items Is FFI = YES and Role = correspondent Global AML Intermediary FI (displayed when CDD Item Role = intermediary and booking country = US US AML - Intermediary FI (displayed when CDD Item Role = intermediary and booking country = US US - AML - Foreign Correspondent Bank (displayed when CDD Items Is FFI = YES and Role = correspondent and booking country = US US AML FFI (displayed when CDD Item Is FFI = YES and booking country = US) US AML Mutual Fund (displayed when CDD Item type = Mutual Fund and booking country = US If a related party is selected for this account, then these KYC Types are selected and displayed in the child case: Global - AML - Individual CDD Global - AML - Individual EDD (displayed when triggered via CDD Item response) US - AML - Individual CDD US - AML - Individual EDD (displayed when triggered via CDD Item response) FATCA - Individuals Know Your Customer Standard Demonstration Guide 3-7

22 When this account is selected: Account Business line Account type Product Booking country Corporate Investment Exchange Traded United Kingdom Investment Banking Derivatives The system will display these KYC Types for the parent case: Global - AML - Entity CDD Global - Entity EDD (displayed when triggered via CDD Item response) UK/EU AML CDD (all Types) UK/EU AML EDD (displayed when triggered via CDD Item response) CRS Taxable Entities FATCA Taxable Entities EU EMIR EU MiFID II Global AML FFI (displayed when CDD Item Is FFI = YES) Global AML Foreign Correspondent Bank (displayed when CDD Items Is FFI = YES and Role = correspondent Global AML Intermediary FI (displayed when CDD Item Role = intermediary If a related party is selected for this account, then these KYC Types are selected and displayed in the child case: Global - AML - Individual CDD Global - AML - Individual EDD (displayed when triggered via CDD Item response) UK/EU AML CDD UK/EU AML EDD (displayed when triggered via CDD Item response) CRS - Individual New Accounts FATCA Individuals Know Your Customer Standard Demonstration Guide 3-8

23 Create new business onboarding case with related party subcase Perform the following steps to showcase the creation of cases and applying of KYC Types based on selected driver data. 1. Click Create > New Business Onboarding Case. 2. In search field, enter euro and click Search. 3. Select Eurotech and click Next. Note: Selection of a sub-type other than the default will drive the following FATCA KYC Types: a. Corporation (default) > FATCA Taxable Entities b. Government > FATCA Intl and Govt Organizations c. Insurance Co. > FATCA Insurance Companies d. Tax-Exempt Organization > FATCA Tax Exempt Entities 4. Select one or more accounts > click Next. 5. At the Select Related Parties step, the system displays related parties associated with each account. Know Your Customer Standard Demonstration Guide 3-9

24 Important Depending on time, the demo user can select one party, both parties, or no related parties. Selecting one party creates one sub-case that must be processed (less time required) Selecting both parties creates two sub-cases that must be processed (more time required). This will require the demo user to complete due diligence requirements for both related parties. Selecting NO parties creates NO child sub-cases. 6. Select Eva Smith as one of the related parties for any one of the accounts > click Finish. 7. Parent case for Eurotech is created with a child sub-case for the selected related party. Know Your Customer Standard Demonstration Guide 3-10

25 Discussion point: Click submit to show how case dependencies are enforced. The parent case for Eurotech cannot be processed until the related party s sub-case is processed and completed. This validation can be enforced at any part of the process but is applied here to ensure the related party is evaluated first to assess risk. Click the KYC Data Collection link to open the sub-case for the related party. The child case for Eva Smith is displayed and shows applicable KYC Types based on the selected driver data for Eurotech. Click the info icon next to the status bar to show the calculation of mandatory and complete Items. This is an OOB asset that will automatically calculate mandatory vs. completed Items for every applicable KYC Type. 8. At the Global AML Individual CDD Type (Basic due diligence), Select YES for Is the individual identified as a Politically Exposed Person? (PEP) Note the following: The customer s risk is changed to High The % Complete display re-calculates as there are new Items to complete IEnhanced Due Diligence displays for completion Know Your Customer Standard Demonstration Guide 3-11

26 Important Upon implementation, Item response property values (i.e. Is PEP? ) can be auto-set to a value passed from another system that exists elsewhere on a clipboard page by using the DataTransfrom feature in the KYC Type and Item definition configuration screens. 9. Navigate to the Customer risk tab at the footer of the case. This display shows why the risk changed to HIGH (High Risk Item response detected). 10. Click on any of the risk icons to open the business rule that defines the risk evaluation. Know Your Customer Standard Demonstration Guide 3-12

27 Pre-configures scorecard rules are used for calculating a risk rating. 11. Complete other applicable KYC Types by entering a response for the mandatory Item(s) 12. Click Finish. 13. At the New Business Onboarding Decision step, select Approve > click Submit. 14. The child case for Eva Smith is resolved. The parent case for Eurotech can now be processed. Know Your Customer Standard Demonstration Guide 3-13

28 15. Click Submit to process Eurotech s parent case. 16. The parent case with all applicable KYC Types is displayed. Discussion points: Parent case is HIGH Risk High Risk related party changed risk of the parent case to High Risk change to High applies Enhanced Due diligence Customer risk tab shows details Know Your Customer Standard Demonstration Guide 3-14

29 New KYC Types Applied Click Finish to demonstrate validation warnings to ensure all mandatory Types and Items are completed Complete each applicable KYC Type by completing the single, mandatory Item 17. When all required Types and Items are 100% complete, click Finish. 18. At the New Business Onboarding Decision step > Select Approve > click Submit. 19. The case is Resolved-Approved. Discussion points: At this stage of the case lifecycle, KYC data is synchronized with the customer s Profile and also written to the due diligence database index table. This processing is pre-configured and defined in each case type s process lifecycle by default. It is expected that when implemented, data will also be communicated to other systems of record according to business requirements. The application provides service integration (SOAP services) to utilize bi-directional data communication with both Pega and non-pega applications. Know Your Customer Standard Demonstration Guide 3-15

30 Create new business onboarding case for individual A manual case can be created for Eva Smith that demonstrates pre-configured due diligence questionnaires for individuals. Eva Smith - sample driver data and applicable Types When creating a manual case for Eva Smith, the following driver data, sourced from the FSIF sample database, is displayed at the select accounts step: Account Business line Account type Product Booking country Retail Insurance Life United States Retail Insurance Life United Kingdom Retail Deposit Savings Hong Kong Retail Deposit Checking Australia Retail Deposit Fixed Singapore When this account is selected: Account Business line Account type Product Booking country Retail Insurance Life United States The system will display these KYC Types in the case: Global AML - Individual CDD Global AML - Individual EDD (displayed when triggered via CDD Item response) US AML - Individual CDD US AML - Individual EDD (displayed when triggered via CDD Item response) FATCA Individuals Know Your Customer Standard Demonstration Guide 3-16

31 When this account is selected: Account Business line Account type Product Booking country Retail Insurance Life United Kingdom The system will display these KYC Types in the case: Global AML - Individual CDD Global AML - Individual EDD (displayed when triggered via CDD Item response) UK/EU AML - Individual CDD (all types) UK/EU AML - Individual EDD (displayed when triggered via CDD Item response) FATCA Individuals CRS Individual New Accounts UK AML - Life Assurance EU MiFID II When this account is selected: Account Business line Account type Product Booking country Retail Deposit Savings Hong Kong The system will display these KYC Types in the case: Global AML - Individual CDD Global AML - Individual EDD (displayed when triggered via CDD Item response) HK AML - Individual CDD HK AML - Individual EDD (displayed when triggered via CDD Item response) FATCA Individuals CRS Individual New Accounts Know Your Customer Standard Demonstration Guide 3-17

32 When this account is selected: Account Business line Account type Product Booking country Retail Deposit Checking Australia The system will display these KYC Types in the case: Global AML - Individual CDD Global AML - Individual EDD (displayed when triggered via CDD Item response) AU AML - Individual CDD AU AML - Individual EDD (displayed when triggered via CDD Item response) FATCA Individuals CRS Individual New Accounts When this account is selected: Account Business line Account type Product Booking country Retail Deposit Fixed Singapore The system will display these KYC Types in the case: Global AML - Individual CDD Global AML - Individual EDD (displayed when triggered via CDD Item response) SG AML - Individual CDD (all types) SG AML - Individual EDD (displayed when triggered via CDD Item response) FATCA Individuals CRS Individual New Accounts Know Your Customer Standard Demonstration Guide 3-18

33 When creating a new case for Eva Smith, follow the same create New Business Onboarding Case steps detailed earlier in this document by searching for and selecting Eva Smith. 1. At the Select accounts step, select one or more accounts depending on the due diligence regulation you wish to demonstrate. 2. Click Next. 3. At the Select related parties step > select Finish. 4. A New Business Onboarding Case is created for Eva Smith. Note that one or more Types are marked as complete and one or more Items contain response data. This demonstrates how the system re-uses completed KYC data stored at the Profile. 5. Complete the Types by entering a response for each mandatory Item. 6. Select approve at the onboarding decision step 7. The case is resolved. Know Your Customer Standard Demonstration Guide 3-19

34 Demonstration Part 3 The KYC profile Locating and navigating profiles 1. While signed on as Diya Cleveland, go to the search field and enter Eurotech > click Enter or click the magnifying glass icon. Note Profiles can also be opened from any of the Profile-based charts on the dashboard. Select Chart Actions > Show data 2. From the list of search results, click the Profile ID to open Eurotech s Profile. 3. Eurotech s Profile displays. Header: Contains basic customer information stored for reference. Know Your Customer Standard Demonstration Guide 4-1

35 Customer risk: Displays the most current risk rating information. Due diligence: All due diligence data is stored here for re-use for future cases. All data is readonly. Related parties: Every related party associated with a customer s new business onboarding case undergoes due diligence evaluation within its own KYC case. When the parent KYC case is synchronized with the Profile, the system will also synchronize and store a consolidated list of all related parties in the Profile. Note The Profile ID is a link that can be clicked to open the Profile for the related party. Cases: References active and resolved KYC Cases associated with customer s Profile. Know Your Customer Standard Demonstration Guide 4-2

36 KYC review feature The KYC Review feature demonstrates the system s ability to auto-generate KYC Review cases based on a review date being reached. Important! This feature ensures timely, risk-based reviews are performed for a financial institution s client base and streamlines the process by automating KYC Review case creation. Dynamic system settings are shipped with the application that associate a time period, in years, with a customer s calculated risk rating. The default KYC Review date settings are as follows: High risk - 1 year Low Risk - 3 years You can access the settings to view or customize them by signing on as KYCFSSysAdmin, go to Explorer > SysAdmin > Dyanmic System Settings. Sort by name to locate the settings associated with the PegaKYC ruleset. When a case is processed for a customer, resolved and synchronized with the Profile, the risk value of the case (High, Low) is compared to the dynamic system setting and used to calculate the Next KYC Review value for the Profile. You can view the Next KYC review date in the header section of any Profile. Know Your Customer Standard Demonstration Guide 4-3

37 To demonstrate how the system uses the Next review date to auto-create KYC Review cases, perform the following steps: 1. Go to Other actions > select Override Review date. 2. At the pop-up window, change the date to today s date and enter the mandatory audit note. Click Submit. 3. The Profile screen will refresh and the Next review date will be updated to today s date. 4. In the background, a system agent will locate Profiles with a next review date containing today s date and automatically create a KYC Review case for the customer. 5. Navigate to Cases and click the refresh icon. Know Your Customer Standard Demonstration Guide 4-4

38 6. A KYC Review case will display in the list of the customer s cases. 7. Click the KYCR- case to open it. 8. Note that the KYC Review case displays pre-existing, completed due diligence KYC Types. Important! According to the financial institution s business requirements, it may be expected to configure the system to nullify all due diligence and risk data for re-evaluation during the review process. This will also require multiple sub-cases to evaluate related party and regional due diligence. Additional KYC Review assets will be built in future versions of the application to address and enhance this functional requirement. Hierarchy visualization tool A sample hierarchy visualization tool included in the application provides ability to create and store hierarchical information associated with a customer. This tool is demonstrated from within the Profile. The default functionality is configured to use data stored in the Profile of each customer. This tool uses mxgraph technology which is an open source, JavaScript diagramming technology supported by Pega. You can learn more about jgraph and mxgraph here: Know Your Customer Standard Demonstration Guide 4-5

39 Important this tool is intended as a model for client implementations only. Functionality is primarily for demonstration and shows how the concept of the viewer can be used. It is assumed the client will require customization and will be responsible for all customizations done in the field. Relationship viewer shapes 1. Node primary shape that represents an individual or business entity in the relationship viewer. There are 3 types of nodes: Root Node Represents the individual or business that the relational structure pertains to. The root (top) node always belong to the customer whose profile was opened and viewed. Parent Node any node that has 1 or more nodes connected to it from below Child Node any node that has another node connected to it from above 2. Connector arrow shape that links 2 nodes together and is used to denote direction of relationship Node icons Delete Used to remove a node from the display. Deleting a Parent node will remove all associated Child nodes from the display. (Changes to the display are committed to the database only when the save icon is clicked on the Tools gadget) Add Child this icon appears on the bottom of each node where one or more Child nodes can be added to a Parent node. Know Your Customer Standard Demonstration Guide 4-6

40 Important - If a Child node is added for a client that has its own Profile and relational structure, then the Add Child icon will not display. This will help avoid creation of numerous, relational structures for the same client within multiple Profiles. A client s relational structures should be maintained within its own Profile. Tools gadget Zoom in Zoom out Actual size Print Poster Print Save Refresh Increases image Decreases image Reverts image to Shrinks the image Saves changes to Discards un-saved size size the default size to standard page Segments the client s Profile changes size and sends the display into user- data structure image to user s defined number default printer of sections for poster printing Using the relationship viewer 1. In the Profile s header > Other Actions > Edit Relationships. The system opens the mxgraph relationship viewer and the default view shows the current customer as the root node (Eurotech) and the related party (Eva Smith). Know Your Customer Standard Demonstration Guide 4-7

41 Related parties may or may not be connected to the root depending on if related parties have been processed in sub-cases for the client or if a user has previously maintained the data structure. Since Eva Smith was identified and processed as a related party, she is displayed as a related part in the relationship viewer by default. Related Parties associated with an onboarding scenario are automatically copied to a unique page used by the relationship viewer pyworkparty(customer). RelatedEntity To add a child node to a node, perform the following steps: 1. Click the Add Node icon to open the dialog window. 2. You can search for existing customers in the sample KYC customer database by checking the Add Existing Customer box. A search field displays allowing you to search on a name. Leave the field empty and click Search. The list of all sample KYC customers displays. (By default, users would want to search first so they can reference customers that have their own Profile.) Know Your Customer Standard Demonstration Guide 4-8

42 3. Or, leave the Add Existing Customer box unchecked and manually enter related entity data. a. Name enter the name of the entity b. Type this will determine the icon to use (individual or business) c. Ownership Owner of Parent points the connector from the child node to the parent node (UP). Owned by Parent points the arrow from the parent node to the child node (DOWN). d. Ownership Description free text that appears on the connector label Know Your Customer Standard Demonstration Guide 4-9

43 4. Click Submit to add the node to the structure. 5. Click the Save icon. Important! Node data is not saved to the database until the user clicks the Save icon. 6. Since the newly added node is for a non-customer, the Add Node icon appears. Note a green checkmark denotes that the node is for a customer with its own Profile. Therefore, relational data should not be maintained here. Users should access the profile of the related entity to add/update relationship data for the entity. Know Your Customer Standard Demonstration Guide 4-10

44 7. To delete a node from the database, click the delete icon and click Save to commit the changes. 8. To edit a node s data: a. Right-click the node > select edit node. b. Dialog window opens with the existing fields and data populated. c. Edit the data as required > click Submit. d. Click the Save icon to commit your changes to the database. e. You can re-open the Edit Relationships to show how the structure is saved to the Profile. Know Your Customer Standard Demonstration Guide 4-11

45 Demonstration Part 4 Rule manager portal Demonstrate KYC rule creation and the rule manager portal Demo users can showcase how the KYC application helps business users create and maintain KYC due diligence rules using a specialized portal designed specifically for this purpose. Important! A sample ruleset is not shipped with the application and must be added to the application stack in order to create new Types or copy and update a pre-configured Type. To configure a sample ruleset for demonstrating Type and Item configuration, perform the following steps: 1. Sign on as kycfssysadmin / install 2. Create a new rule set a. Create > SysAdmin > RuleSet. b. Name the Ruleset: SampleCustomization c. Keep the default version and description 3. Click Create and open 4. Click Save on the following screen. Know Your Customer Standard Demonstration Guide 5-1

46 5. Add the ruleset to the KYC for FS application stack. a. Open the KYC for Financial Services application. b. Add the ruleset below the PegaKYCFS Ruleset as shown below. c. Save the KYC for FS application. You are now ready to modify existing/create new Types and Items for demonstration. To demonstrate creation of KYC Types, perform the following steps: 1. Sign on as PW: install 2. The KYC Rule Manager portal displays. a. The left, navigation panel displays all pre-configured KYC Types organized into categories. b. New categories (classes) can be created upon implementation. c. New Types can be created or existing ones can be modified. Know Your Customer Standard Demonstration Guide 5-2

47 To demonstrate how new KYC Type rules are created, right-click on any category in the navigation tree and select New > KYC Type. 3. Name the Type rule and save the new rule to your custom ruleset and version. Know Your Customer Standard Demonstration Guide 5-3

48 4. Click Create and open. Important - For a detailed steps and supplemental information on how to create and configure KYC Type and Item rules, please refer to the KYC Implementation Guide which can be found on the PDN at: After you have created a new Type rule and sample Item(s), sign on with the diya.cleveland@fsi.com operator ID to create a new case and demonstrate how the newly created Type is applied to the case. Know Your Customer Standard Demonstration Guide 5-4