Overview
A Know Your Customer (KYC) program is a set of policies and procedures implemented by financial institutions to verify and understand the identity and background of their customers. The main purpose of a KYC program is to prevent and detect money laundering, terrorist financing, fraud, and other illicit activities within the financial system.
Introduction to Kayla
In traditional KYC, the KYC information and process are reviewed periodically according to a schedule based on the customer's risk categorization.
Today, regulators and financial institutions (FI) are eager to adopt the event-driven approach. However, distinguishing signals from noise remains challenging and is often cost-prohibitive due to the manual nature of traditional KYC processes.
Moreover, banks and FIs often have heavy integrations with KYC or contract lifecycle management tools, such as Pega or Fenergo. From the time and cost perspective, the bulk of their overhead is sourcing and reconciling the data according to their approved policies and procedures.
Perpetual KYC (or pKYC) helps banks and FIs monitor their customers for key changes without incurring significant overhead and manual labor. These solutions enable reacting to events as they occur. This way, important changes are investigated promptly rather than waiting for a fixed refresh date. Plus, clients with no changes are not refreshed unnecessarily—just because time has passed.
Kayla, your personified AI Agent for Perpetual KYC Refresh, brings the following capabilities to the table:
Coordination of periodic event-driven KYC review activities for entities and associated parties
Continuous monitoring of corporate and government registries for KYC-triggering events, such as changes in beneficiaries, boards or officers, addresses, and so on
Investigations, gathering of data and records from internal systems, Internet, and commercial databases
Accumulation of facts from compliance investigations and internal audits to ensure adherence to regulatory policies for customers and transactions
Business Process overview
A Business Process (BP) represents the core workflow and design of any automation use case in the WorkFusion platform. Out of the box, Kayla comes with two BPs:
Periodic review representing Kayla's core data processing workflow.
Periodic report for generating a report listing statuses for all cases subject to periodic review. For details, read Input and output data.
The figure below demonstrates the Periodic Review BP for the Kayla AI Agent with a manual review task:
Kayla's BP has the following flow:
Kayla monitors the input source for any new records. If such records are detected, a periodic review is initiated.
Kayla gathers information about screened entities in a KYC platform (for instance, a contract management system).
The gathered information about the screened entities is enriched with data from additional sources (customer documents).
Procedural requirements are calculated based on configured rules.
Required data is fetched from approved data sources and data enrichment sources in accordance with preset rules. If necessary, the information gathered in Step 2 is updated.
The updated information is split into groups and reviewed according to preset review methods:
Exact Match
Information Extraction Model
Manual Review
Name Match
Verify Status
Verify Address rules model
Verify Address ML model
When the configuration includes a human-in-the-loop step (optional), Kayla's results are submitted for manual review in Workspace based on the step's configuration.
Periodic review reports are generated per each entity (a row in the input file).
Information for all entities acquired from different review methods is consolidated into a summary report. Kayla delivers the summary report according to the specified output settings.