Know Your Customer v7.1 For PRPC 7.1. Demonstration Script

Transcription

1 Know Your Customer v7.1 For PRPC 7.1 Demonstration Script

2 Copyright 2013 Pegasystems Inc., Cambridge, MA All rights reserved. This document describes products and services of Pegasystems Inc. It may contain trade secrets and proprietary information. The document and product are protected by copyright and distributed under licenses restricting their use, copying distribution, or transmittal in any form without prior written authorization of Pegasystems Inc. This document is current as of the date of publication only. Changes in the document may be made from time to time at the discretion of Pegasystems. This document remains the property of Pegasystems and must be returned to it upon request. This document does not imply any commitment to offer or deliver the products or services described. This document may include references to Pegasystems product features that have not been licensed by your company. If you have questions about whether a particular capability is included in your installation, please consult your Pegasystems service consultant. For Pegasystems trademarks and registered trademarks, all rights reserved. Other brand or product names are trademarks of their respective holders. Although Pegasystems Inc. strives for accuracy in its publications, any publication may contain inaccuracies or typographical errors. This document or Help System could contain technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Pegasystems Inc. may make improvements and/or changes in the information described herein at any time. This document is the property of: Pegasystems Inc. 1 Rogers Street Cambridge, MA Phone: (617) Fax: (617) Document: Demonstration Script Software Version: 7.1 Updated: Jan 2013

3 Contents Overview... 4 Sign on and dashboard preparation... 6 Pre-demonstration set up Create pre-demo case for EuroTech Create pre-demo case for Eva Smith (Related party of EuroTech) Demonstration EuroTech Selected Account & Applicable KYC Types Matrix Create new account/product onboarding case with related parties Process child case for related party Process parent case Create New Business Onboarding Case for Related Party Demonstrate KYC Rule Manager Portal Demonstrate Master Profile Assets Customer Relationship Viewer Overview Relationship Viewer Shapes Using the Relationship Viewer... 39

4 Overview This demonstration script showcases the following KYC framework and PRPC technology assets: 1. Pega 7 Case Management a. Comprehensive dashboard b. Pega 7 User Experience 2. Bulk case creation a..csv file import b. Auto-assignment of work to a workgroup 3. New business onboarding case creation 4. Sub-case creation for related parties a. parent/child case relationships with dependencies 5. Risk Rating engine a. Risk rating process uses DSM scorecard rule by default b. Risk change and new applicable Type based on underlying risk of related party c. Risk change and new applicable Type based on captured due diligence data 6. Pre-configured, 800+ rules and logic for KYC due diligence a. 18 OOB KYC Types provided in Sample layer b. Conditional display of due diligence requirements (FATCA, Standard Due Diligence, Enhanced Due Diligence, etc ) 7. correspondence a. E-Form selection and attachment to 8. Master Profile a. Re-use of captured and approved due diligence data 9. Relationship Hierarchy a. Out-of-the-box Relationship Viewer (built on mxgraph technology) 10. Content Management Interoperability Services (CMIS) Integration a. Alfresco content server integration assets 11. FATCA regulation assets a. Automated case creation for pre-existing accounts b. Straight-through processing for exempted accounts based on configurable logic c. USD currency conversion & balance aggregation by account type d. Indicia evaluation

5 Demonstration Back story: When new customers, accounts and products are onboarded at a financial institution, proper due diligence must be performed before the accounts can be transacted against or before the institution can begin its business relationship with the client. This script demonstrates required due diligence and FATCA compliance 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 customer, account, product and related party date required for KYC evaluation. Assumption is also made that a single user will be presented all applicable 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 a workgroup. 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 ). The KYC system is expected to be integrated with Pega-based and non-pega based onboarding systems to serve as an extension of the entire end-to-end onboarding and due diligence process.

6 Sign on and dashboard preparation Follow these steps to refresh and populate the dashboard prior to demonstration. (If time permits, these steps can be demo ed to the audience to show automated case creation via data import.) 1. Sign on as > password: install Diya is the KYC Analyst Manager with super-user access. 2. The KYC Analyst Manager portal provides a super-user view and access to all users, tools and work in the KYC Analysts workgroup 3. On the main Dashboard tab > expand the Demo Tools gadget 4. If you need to refresh the database which will clear the dashboard of all cases and data, click Delete Sample Cases button

7 5. Press OK when prompted to clear any existing sample work objects and data from the system 6. The Dashboard will refresh and display no cases or data when complete 7. At the Demo Tools gadget, select the New Business Onboarding sample file 8. You can show the sample files used for data import and case creation. Click the Open button to open the binary file rule 9. In the binary file rule form, click Download File to view the csv file

8 Discussion points: Data model, file format and parsing rules included in the framework can be modified to accommodate data requirements of client Different formats can be used (xlsx, csv, tab delimited, xml, etc ) File can be maintained by the client and imported to system via agent or other automated process Although file import and parsing functionality is ideal for quickly populating the dashboard for demonstrations, this feature also highlights the system s ability to use data for bulk case creation. This has many uses for production implementations and would typically be run using an automated process. 10. Return to the Dashboard and open the Demo Tools gadget 11. Click the Run button to start the file import process 12. In Progress icon will display and when the import is finished, the dashboard will refresh to show the newly created onboarding cases 13. Return to the Demo Tools gadget, select the FATCA Lookback sample file

9 14. As with the New Business Onboarding file, an Open button displays to access the sample file used for the import process. Click to open and download the binary file rule 15. Click the Run button to start the file import process 16. In Progress icon will display and when the import is finished, the dashboard will refresh to show the newly created onboarding and FATCA lookback cases Discussion points: 1. Dynamic UI accommodates different resolutions and devices a. Re-size to show how dashboard adjusts to fit content 2. Cases are automatically assigned to users in the workgroup. Click on a user or My Worklist to display assigned work. Routing and assignment logic can be configured according to client s business requirements.

10 3. Custom report shows Master Profiles that were automatically created for each customer when the KYC case was created for the customer. a. Associated cases belonging to the customer are linked to each profile b. Initial Risk Rating calculated within the case is rolled-up to the Profile c. Completion status shows progress of KYC requirement completion Important - If required to demonstrate the system within a short timeframe, then 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 do not have related parties and therefore, processing of a child sub-case is not required. Pre-demonstration set up By creating cases and completing KYC Type requirements in advance, users will not have to complete all KYC Types for the entity during the demonstration and this can save valuable time. Important: Creating cases and completing KYC Types in advance helps demonstrate reuse of KYC data stored at the Master Folder. Create pre-demo case for EuroTech 1. Click the Create icon > Create New Business Onboarding Case

11 2. In search field, enter euro and press Search 3. From the list of results, select EuroTech > Press Next>> 4. At the Select Accounts step, select NO account and press Next

12 5. At the Select Related Parties step, press Finish No related parties display because no accounts were selected 6. A New Business Onboarding case is created with the following KYC Type: Entity Standard Due Diligence Note The displayed KYC Type is a basic due diligence requirement that, for purposes of this demonstration, must be completed when no account or products are present. i.e. only the customer is being onboarded Important - For all OOB KYC Types displayed in a case, each applicable Type will contain only a single mandatory Item that requires a response. This will facilitate and quicken the completion process. Mandatory Items are designated with an orange asterisk icon: Items that impact Risk Rating are designated with a red flag icon: 7. Complete the Entity Standard Due Diligence KYC Type by selecting a YES response for the single, mandatory Item

13 8. The KYC Type is marked as complete. Press Finish 9. At the New Business Onboarding Decision step, select Approve and press Submit

14 10. The case is resolved-completed. Close this work item Create pre-demo case for Eva Smith (Related party of EuroTech) 1. Click the Create a Case icon > Create New Business Onboarding Case 2. In search field, enter eva > Press Search 3. Select Eva Smith > Press Next 4. At the Select Accounts step, select NO accounts and press Next

15 5. At the Select Related Parties step, press Finish 6. A case is created displaying the following KYC Types: Individual Standard Due Diligence Individual Standard FATCA Note The displayed KYC Types are basic due diligence requirements that, for purposes of this demonstration, must be completed when no account or products are present for an individual. i.e. only the customer is being onboarded Important - For all OOB KYC Types displayed in a case, each applicable Type will contain only one mandatory Item that requires a response. This will facilitate and quicken the completion process. Mandatory Items are designated with an orange asterisk: Items that impact Risk Rating are designated with a red flag:

16 7. Complete the Individual Standard Due Diligence requirement by selecting a NO response for the mandatory item 8. Complete Individual Standard FATCA by selecting a NO response for the mandatory Item 9. Press Finish 10. At the US Status Evaluation step, select Non-US Person, enter a comment (not required) and press Submit 11. At the Onboarding Decision step, select Approve, enter a comment (not required) and press Submit

17 12. The KYC Case for Eva Smith is resolved 13. Pre-demonstration setup is complete Demonstration Important Use the following matrix as a quick reference to drive which KYC Types are selected and displayed in a case during demonstration. You can demo specific account/product-based regulatory requirements by selecting specific Account/Account Type/Product/ Location combinations (Resulting Type is Highlighted Yellow) Other Types are driven by factors such as Customer Type (individual or business) or by a change in Risk. EuroTech Selected Account & Applicable KYC Types Matrix Account # Account Type Product Location (Country) Selected & Displayed Types Investment Mutual Fund Canada Entity Standard Due Diligence Investment Profile Entity Enhanced Due Diligence (when risk changed to HIGH) Account Enhanced Due Diligence (when risk changed to HIGH)

18 Canada IIROC Entity Standard FATCA Account # Account Type Product Location (Country) Selected & Displayed Types Investment Mutual Fund United States Entity Standard Due Diligence Investment Profile US Mutual Fund US Brokerage US FINRA 2111 Entity Enhanced Due Diligence (risk changed to HIGH) Account Enhanced Due Diligence (risk changed to HIGH) Entity Standard FATCA Account # Account Type Product Location (Country) Selected & Displayed Types Investment Credit Default SWAP United States Entity Standard Due Diligence Investment Profile US DFA SWAPS US Brokerage US FINRA 2111 US SWAPS with Derivatives Entity Enhanced Due Diligence (risk changed to HIGH) Account Enhanced Due Diligence (risk changed to HIGH) Entity Standard FATCA Account # Account Type Product Location (Country) Selected & Displayed Types

19 Escrow Wire Transfer United Kingdom Entity Standard Due Diligence Escrow Acct FATCA EXEMPT Entity Enhanced Due Diligence (risk changed to HIGH) Account Enhanced Due Diligence (risk changed to HIGH) Account # Account Type Product Location (Country) Selected & Displayed Types Investment Trading United Kingdom Entity Standard Due Diligence Investment Profile EU MiFID Entity Enhanced Due Diligence (risk changed to HIGH) Account Enhanced Due Diligence (risk changed to HIGH) Entity Standard FATCA Selecting ALL Applies these 12 KYC Types: Investment Trading Canada 1. Entity Standard Due Diligence Investment Mutual Fund United States 2. Investment Profile Investment Credit Default United States 3. US DFA SWAPS 4. US Brokerage SWAP 5. US FINRA Escrow Wire Transfer United Kingdom 6. US SWAPS with Derivatives Investment Trading United Kingdom 7. Entity Enhanced Due Diligence (risk changed to HIGH) 8. Account Enhanced Due Diligence (risk changed to HIGH) 9. Entity Enhanced FATCA 10. Canada IIROC 11. EU MiFID

20 12. US Mutual Fund Escrow Acct - FATCA EXEMPT Create new account/product onboarding case with related parties Using the matrix above, this script will demonstrate selection of all accounts and a single, related party associated with an account. Selection of accounts for demonstration should be done at the discretion of the demo user. 1. Click the Create a Case icon > Create New Business Onboarding Case 2. In search field, enter euro > Press Search 3. Select EuroTech > Press Next 4. All accounts and associated products display (expand to view products)

21 5. Select ALL Accounts > Press Next Important When demonstrating the system, the user should determine any specific due diligence requirements prior to the demonstration to help determine which accounts to select. Selected accounts will ultimately drive the applicable KYC Types as detailed in the Account/Type matrix. For this script, all accounts are selected which will drive the selection and display of all applicable Types. 6. The system queries related parties for each account and returns parties for all of the selected accounts Indirect account holder (Albert Meyer) appears for all accounts since the individual is 15% controlling shareholder of the company and therefore considered related to each account Direct account holder (Eva Smith) is an authorized signor for all accounts Important Depending on time, the demo user can select one party, both parties, or no related parties for this customer. 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. Depending on which related party is selected, the following Types will display in each child sub-case:

22 Related party Albert Meyer Selected & Displayed Types for each: Individual Standard Due Diligence Individual Enhanced Due Diligence (if/when risk changed to HIGH) Individual Standard FATCA Eva Smith Individual Standard Due Diligence Individual Enhanced Due Diligence (if/when risk changed to HIGH) Individual Standard FATCA 7. Select Eva Smith as one of the related parties for any one of the accounts > press Finish 8. Parent case for EuroTech is created with a child sub-case for the selected related party

23 Discussion point: Press 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. Process child case for related party 1. Click the Collect & Evaluate Requirement Data link to open the sub-case for the related party. 2. The child case for Eva Smith is displayed

24 3. Assumption is made that initial due diligence has already been performed for this person. (completed in pre-demo setup) 4. Each KYC Type is marked as complete and the status indicator shows 100% Complete Discussion points: Demonstrate Content Server Integration (CMIS assets) a. Navigate to the Standard Due Diligence Type b. Open the Documentation Verification group c. Click the Search button If CMIS assets are turned on (enabled) in the OOB sample application or configured in a custom-built application, the system will connect to the server

25 and display the Content Server pop-up window for navigation and document selection when the Search button is pressed. If CMIS assets are turned off then the default functionality will search the local instance for sample documents and present the following pop-up:

26 Important By default, the KYC solution and sample application are shipped with CMIS Integration disabled and locate the sample files shipped with the system. For detailed instructions on Content Server configuration, please refer to the Implementation Guide. Discussion points (Cont d): Showing the sub-case with completed KYC Types demonstrates re-use of completed and approved due diligence data contained in the customer s Master Profile Cases where required due diligence data is completed and approved can be auto-resolved for straight-through processing Click the info icon next to the status bar to show the calculation of mandatory and complete Items 5. Change the Individual Standard Due Diligence KYC Type as follows: Select YES for Has the individual been identified as a PEP? 6. Note the following: The customer s risk is changed to High

27 The % Complete display re-calculates as there are new Items to complete Individual Enhanced Due Diligence displays for completion Important Item response property values 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 rule defintion. 7. 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)

28 8. Click on any of the risk icons to open the business rule that defines the risk evaluation By default, DSM rulesets are included in the application stack so that scorecard rules can be used for calculating a risk rating 9. Navigate to the Enhanced Due Diligence KYC Type and complete the single, mandatory Item 10. Press Finish

29 11. At the New Business Onboarding Decision step, select Approve > press Submit 12. The child case is now resolved. Close this case and return to the parent case for EuroTech Process parent case Important refer to the EuroTech s account/kyc Type matrix to determine which Types you need to apply and display in the Case. Remember: Selecting all accounts will apply all applicable KYC Types which will slightly increase the time required to navigate and complete each Type. 1. Return to the parent case for EuroTech by clicking the link at the top of the case or by closing the sub-case and refreshing the dashboard 2. At the Parent Case, select Other Actions > Refresh Note the status of the related case for Eva Smith is now Resolved-Completed 3. Press Submit to process EuroTech s parent case 4. The parent case and all applicable KYC Types is displayed

30 Discussion Points: Case is HIGH Risk o High Risk related party changed risk of the parent case to High o Risk change applies Entity Enhanced Due diligence and Account Enhanced Due Diligence Type o Customer Risk tab shows details Account Detail Tab o System evaluates the selected account s data, converts currency and aggregates amounts to determine FATCA exemption / FATCA requirement o Entity Standard FATCA is Required for this customer o Account Detail tab shows detail of why FATCA applies Approved / completed KYC Type o Standard Due Diligence was completed in the pre-demo setup and stored in Master Profile for re-use New KYC Types Applied o Complete each applicable KYC Type o The case cannot be processed until all mandatory Items are complete

31 o There is one, single mandatory Item for each applicable KYC Type 5. When all required Types and Items are 100% press Finish 6. Because Entity Enhanced FATCA applies, the case is routed to the relationship manager for status confirmation 7. Click the Review Customer Information (Decision) link to be directed to the Relationship Manager Evaluation Decision

32 8. At the Relationship Manager Evaluation Decision, select YES, enter comments (not required) and press Submit Discussion Points: The various assignment steps shown in this process represent how institutions can route due diligence work to different parties such as relationship managers. It is expected that these steps will be modified during implementation to meet specific business requirements of the client. 9. The case is assigned back to the previous operator (Diya Cleveland) to perform US Status Evaluation 10. At this step, select Non-US Entity, enter comments (not required) and press Submit 11. Based on the selected accounts at the first stage of case creation, the system displays each account and associated product at the New Business Onboarding Decision step 12. Select approve or decline for all displayed products (required) Comments are not required. 13. Press Submit to resolve the case.

33 14. Confirm harness is displayed Create New Business Onboarding Case for Related Party If time permits, a manual case can be created for Eva Smith that demonstrates re-use of capture, approved due diligence data. Simply follow the create New Business Onboarding Case steps detailed earlier in this document. 1. Select Eva Smith and press Next

34 2. Select the single account displayed for Eva Smith and press Next 3. NO related parties apply to this account select Finish 4. When the case is created, only the US Life Insurance KYC Type will need to be completed as all other Types have been completed and approved in the prior steps. Selected Account # Account Type Product Location (Country) Selected & Displayed Types Insurance Life United States Individual Standard Due Diligence Individual Enhanced Due Diligence (if/when risk changed to HIGH) Individual Standard FATCA US Life Insurance 5. New Business Onboarding Case for Eva Smith is displayed with the US Life Insurance KYC Type

35 Demonstrate KYC Rule Manager Portal Demo users can showcase how the KYC framework is designed to help business users create and maintain KYC due diligence rules using a specialized portal designed specifically for this purpose. To demonstrate the flexibility and build-for-change technology in the KYC framework: 1. Sign on as Shannon.Sellers@fsi.com PW: install 2. The sign on defaults to the KYC Rule Manager portal a. The left, navigation panel displays the pre-configured OOB 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 3. To show how new KYC Type rules are created, right-click on any category or on a KYC Type > New > KYC Type

36 4. To show how an existing Type can be modified or copied, click on the Type rule name to open the rule 5. Once the rule is opened, it can be copied or saved as a new version to the unlocked version of the sample ruleset shipped with the framework (SampleFSDueDiligence) Important - For a detailed explanation on how to create KYC Type and Item rules, refer to the KYC v7.1 Implementation Guide. Demonstrate Master Profile Assets 1. At the dashboard, navigate to the Customer Profiles list > click on EuroTech s profile 2. EuroTech s Master Profile opens and display all pertinent customer data used by the system Completed / approved due diligence data (KYC Types) for re-use (updated when each case is processed and synched with Profile)

37 Risk information (updated when each case is processed and synched with Profile) Case history (shows all cases processed in the system for the customer) Related Parties (and links to their Master Profiles) Customer Relationship Viewer Overview The relationship viewer included in the KYC system allows users to store and manage relationship information associated with a customer such as a corporate hierarchy. Although this tool can be configured to communicate with other data stores, the out-of-box functionality is configured to use data stored in the Master profile of each customer. The KYC Relationship Viewer, included in version and higher, uses mxgraph technology which is an open source, JavaScript diagramming technology supported by Pega. You can learn more about jgraph and mxgraph here: Relationship Viewer Shapes 1. Node primary shape that represents an individual or business entity in the relationship viewer. There are 3 types of nodes: a. 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. b. Parent Node any node that has 1 or more nodes connected to it from below c. 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

38 Root Node Connector Child Node Parent/Child Node Child Node 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 pressed 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. Important - If a Child node is added for a client that has its own Master 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 Master Profiles. A client s relational structures should be maintained within its own Master Profile.

39 Tools Gadget Zoom in Increases image size Zoom out Decreases image size Actual size Reverts image to the default size Print Shrinks the image to standard page size and sends the image to user s default printer Poster Print Segments display into user-defined number of sections for poster printing Save Saves changes to the client s Master Profile data structure Refresh Discards un-saved changes Using the Relationship Viewer Open a Master folder from the dashboard. You can do this by double-clicking a Master Profile from the list of profiles. At the Master Profile s header > click the Other Actions button The system opens the mxgraph relationship viewer and the default view shows the current customer as the root node (EuroTech). 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 Folder page used by the relationship viewer pyworkparty(customer). RelatedEntity

40 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 Master profile.)

41 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 4. Press OK to add the node to the structure 5. Press the Save icon. (Node data is not saved to the database until the user presses 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 master 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. 7. To delete a node from the database, click the delete icon and press the Save button to commit the changes 8. To edit a node s data: a. Right-click the node > select edit node

42 b. Dialog window opens with the existing fields and data populated c. Edit the data as required > press OK d. Click the Save icon to commit your changes to the database