Izengard Customer Journey - KYC (Onboarding) / CDD
Izengard drives process driven best practices in onboarding, due diligence and on-going CDD. The tabs below will apply to all industries. The difference largely being in the Crypto space where anonymized ID tokens have to be extracted and then ID determined through other means. Izengard ingests multiple regulatory requirements and where possible auto-classifies/categorizes and uses information obtained during on-boarding to determine the appropriate course of action. For investments, capital markets the categorization and suitability steps are more onerous and in-line with best practices and regulatory requirements.
Izengard is designed for perpetual KYC. A KYC tool on it’s own cannot do this and relay the facts back to Fraud, Sanctions or Transaction Monitoring without these modules being part of the suite. In this case those tools whilst they espouse perpetual KYC fall short, because it is actually a multi-way bargain, you have to understand root causes in other areas such as Fraud, Sanctions, Cyber and Transaction Monitoring to handle perpetual KYC in it’s fullest sense.
Depending on client requirements, Izengard does not just rely on local government and other sources for verification of the customer, and therefore is not limited to one jurisdictional ID&V check. If the client requires a more regional/global and social media check to verify key parameters, Izengard can be set up to do this. If a customer is already known to Izengard due to its consortium database, Izengard provides additional information on a request basis. Izengard applies document verification techniques and other artificial intelligence techniques to determine if documents supplied are forgeries or real. In addition, where there is real time feeds to other organizations available for education, salary/income and other checks, these can be easily incorporated by KYC analysts in Line 2 or Line 1 based on organizational permissions.
Izengard has in particular a range of checks that do not impact the customer onboarding experience by doing the following:
a) Scan one local plus N configured local/regional/global data sets for government approved ID and indicate when each of the data sets was last updated. Izengard has multiple integrations with 3 to 4 global/regional/local ID&V providers.
b) Work with a range of document verification services to verify the validity of the documents submitted, including names, aliases etc and addresses, locations, salary, employer etc
c) Apply AI based NLP and Computer Vision to examine any key discrepancies in the documents provided and determine if there indeed has been any potential tampering or forgery committed
d) Call Izengard’s sanctions/name screening module to perform a sanctions check on the individual
e) Based on the results from above, allow the following options:
- Allow full onboarding
- Allow partial onboarding with limits set until full CDD is complete
- Deny onboarding and present reasons
Izengard assesses a customer not just on AML risk factors, but also on other characteristics that are identified via cyber-security and via IT Risk Assessment as well. If Izengard’s consortium model has come across this customer, even though tokenized, it can add any additional data points from the consortium model to the risk assessment. Risk assessments are driven by a combination of best practices, regulatory requirements and by the product risks/suitability requirements above as well as taking into factors from the source of wealth/source of funds processes above. The important difference in Izengard is that this is not a questionnaire approach but it is threat intelligence driven, locally, regionally and globally via global threat intelligence AML database that Izengard has sourced and integrated into our KYC. Clients can add additional criteria which may be specific to jurisdictions, to their policy and to their regulatory or line of business to the risk assessments. Izengard will notify clients if the factors in the risk assessment do not live up to observed behavior. Once the final risk rating is completed, Izengard sets up an internal and an external segmentation for assessing peer risks with other modules (fraud, transaction monitoring, sanctions screening, device profiling).
Once the initial risk rating and initial segments are recommended, the process is ready to deal with risk assessments.
Izengard supports the set up of an Enterprise Wide Risk Assessment (EWRA) and is often done during initial implementation and then Line 2 Risk Assessment specialists, can go in and modify these assessments by adding new categories, new criteria, change scoring method and if necessary remove old or redundant categories.
The individual risk assessments within EWRA are driven by Izengard’s respective modules. However, Izengard doesn’t waste Product/Channel Owners time because it combines Sanctions, Fraud, AML and Cyber risks with products and channels into one and allows the Product/Channel owners to fill this out based on deadlines set for them.
All of the Izengard risk assessments are organizational structure aware including geo-locations, branch versus full fledged holding company or subsidiary. Izengard’s Risk Assessments can be seen at individual line of business level or rolled all the way to Group structures.
Perpetual KYC - On-going CDD Monitoring
Izengard integrates outputs from fraud, cyber, sanctions and transaction monitoring into behavioural characteristics that challenge the circumstances under the original Customer Risk Assessment performed.
If any of these are violated, Izengard queues up the variances for review and gives the CDD analyst wider risk indicators and in some cases with a pre-scribed course of action as determined by the system given risks, regulatory red flags and other information.
The CDD analyst can make a decision and if necessary escalate to the Head of KYC and other leaders as required via Izengard’s workflows.
Leveraging KYC across Cyber Security, Fraud, Sanctions, Transaction Monitoring and enabling the detection of anomalies
Advanced Entity Resolution – Alias entities, hidden entities and profiling
Izengard’s Mind Map module receives entity information continuously and not just at onboarding. The continuous monitoring of the entity (which can be a device, product, customer, financial intermediary, vendor etc) and lifestyle or other changes is what makes Izengard’s entity resolution stand out from the crowd.
Izengard combines entity information from cyber-security, IT risk management, from govt approved data sources, from social media sources, from other third parties at a global level. So if a customer changes names in one country but not another or a retail customer uses multiple alias’ and has different govt ID mechanisms, these are highlighted and escalated for CDD review as and when Izengard is informed or detects these changes happening.
Remember Izengard doesn’t store personally identifiable information without privacy enhancing technologies, so data is usually un-encryptable without specific mechanisms put in place. This rich profiling that Izengard completes across multiple domains and integrating external data sets is what makes Izengard the best perpertual KYC and the most complete crime solution for the industry.
Izengard’s Mind Map is not just resolving entities, but offers an alternative approach when paired with lists and other data sources for Name Screening and Sanctions. The techniques used in the Izengard Mind Map module are more sophisticated and use NLP and other mechanisms better than fuzzy logic alone to handle the complexities in resolution and in name screening.