In today’s regulatory environment, Accountable Institutions under the Financial Intelligence Centre (FIC) Act are required to adopt a Risk-Based Approach (RBA). This approach mandates a deep understanding of how a firm’s products and services could be exploited for money laundering or terrorist financing, and outlines steps to mitigate these risks.
Key requirements include:
- Customer Due Diligence (CDD): Institutions must thoroughly understand who they are conducting business with, ensuring they are well-informed about their clients’ identities and activities.
- Record-Keeping and Auditing: Comprehensive records of all client interactions and transactions must be maintained and readily accessible for audits.
- Sanctions Screening: Regular checks against sanctions lists are essential, with some situations requiring direct reporting to the FIC.
- Risk Management and Compliance Programme (RMCP): Firms must develop and maintain a robust RMCP, comprising detailed policies, procedures, systems, and controls to manage compliance.
A common misconception among firms is that these requirements can be outsourced, resulting in a one-time document that satisfies all regulatory needs. However, this approach falls short. Client risk is dynamic—your low-risk client today could be the mayor of Cape Town tomorrow. A static compliance document is insufficient. What’s needed is a system that continuously monitors and adapts to changes in client profiles.
Introducing DataView Wealth
DataView Wealth offers a Perpetual KYC engine designed to continuously monitor client records, automatically adjusting for any changes. Our solution goes beyond just compliance; it actively documents itself, providing you with an up-to-date RMCP manual that’s ready for external compliance officers or regulators.
How It Works:
- Initial Screening: When a client’s record is first entered, it undergoes immediate screening against our comprehensive lists. This screening process is then repeated daily.
- Initial Risk Rating (IRR): Using our advanced Compliance Track rule engine, the client undergoes an IRR, taking into account geographical risk, product selection, source of funds, and more. This process generates a Risk Score and Risk Band.
- Onboarding: Armed with this information, the client is ready for onboarding. Our FIC-compliant Compliance Tracks determine the necessary onboarding requirements, such as proof of tax ID, address, or funds. The system also decides on the level of integration needed for client verification, such as matching full names to IDs at the Department of Home Affairs (DHA) or verifying selfies. You can also set expires on individual components (statuses) such as ProofOfAddress, dependent on the risk level of the client.
- Continuous Monitoring: Compliance is not a one-time exercise. Our system continuously monitors for any changes, such as a client moving to a new country, opening a new product, triggering a screening hit, having a suspicious transaction, or just having a Compliance Track status expire. If any changes occur, the relevant Compliance Tracks automatically rerun the Risk Rating, ensuring that your firm remains compliant.
- Automated Compliance Manual: Since DataView Wealth is fully integrated, the system can auto-generate a Compliance Manual, complete with the latest rules and regulations at any given time.
By choosing DataView Wealth, you’re not just meeting compliance requirements—you’re exceeding them with a dynamic, self-sustaining system that evolves with your clients. Don’t leave compliance to chance. Let DataView Wealth be your partner in perpetual KYC and compliance excellence.