Configuring Perpetual KYC Event Type

The Perpetual KYC (PKYC) framework enables financial institutions to efficiently manage a stream of customer-related events. PKYC provides a structured approach to crafting Customer Review Journeys, and tailoring risk management to specific business and regulatory demands.

The PKYC framework is a comprehensive solution designed to address the varying impact of events, ranging from minor changes to critical alterations that could elevate business risk or trigger legal obligations. PKYC ensures that every event is reliably received, processed, and audited, adhering to both internal business rules and external laws. This framework seeks to minimize unnecessary customer interactions and back-office effort, while maintaining compliance. By utilizing Event-Driven Architecture (EDA), PKYC creates Customer Review Journeys tailored to specific business and regulatory needs, enhancing the overall risk management process for financial institutions.

Event types must use the PerpetualKYC - Event process manager to be part of the PKYC framework in the EDA.

Custom process configuration

Note: The following content, referenced from Pega Documentation, is included here to help you better achieve the module learning objectives.

This section outlines the configuration of how each event type should behave within the Perpetual KYC process.

That configuration can be made from the Custom process configuration tab of the EDA Configuration landing page (Configure >> Financial Services >> Event Management >> Configuration), where a list of all Perpetual KYC events is maintained. Each line in the table contains identifying information with a summary setting for each of the configurable areas.

Any new event type registered at EDA and configured to be routed to the Perpetual KYC process must also be registered in this list. The Configure new event button, available at the bottom of the list, can be used to register new event types.

The configuration details of each of the entries can be accessed through the View and Configure options, available at the contextual menu at the right of each entry. This gives access to the five main groups of configurations that are described in the subsequent sections of this document.

Customer Review types

The PKYC framework enables clear segregation of Customer Reviews into three types of Customer Review:

Quick Review
Full Review
Customer Periodic Review

Any new Event of a Customer Review must fit within one of these three Review types, chosen through the related Bundle name.

Quick Review

The automatically generated Quick Reviews begin at the Due Diligence Stage for events from trusted sources and at the Enrich Stage for untrusted sources. Manual generation of Quick Reviews is also supported as an extension point.

Quick review is the quickest path to Case completion, triggered by specific events from the trusted source. A Quick Review occurs when the user does not need to go through all screens, in either the Enrich Stage or the KYC Types in the Due Diligence Stage to complete the Case. Quick Review Cases usually go through straight through processing (STP) without manual intervention, unless specific conditions such as unconfirmed sources, new mandatory fields, new KYC Types, required screenings, or unmet Requirements are present.

You can change a Quick Review that does not go through STP into a Full Review. When a Quick Review gets changed into a Full Review, the Case will go to the Due Diligence Stage. If the Case was in the Due Diligence Stage when the transition from Quick Review to Full Review took place, all information in the child Cases, whether they are still open or already closed, is preserved. This information is presented again, if relevant, when the child Case is reactivated upon the user's return to the Due Diligence Stage.

Full Review

Full Review is a comprehensive review check that always encompasses all screens and KYC types. This is a thorough approach that ensures a comprehensive assessment of Cases. A Full Review occurs when the user needs to go through all screens, either in the Enrich Stage or in the KYC types in the Due Diligence Stage to complete the Case.

The Full Review can never go through STP. A Full Review, whether initially generated as such or transformed from a Quick Review, will trigger a recalculation of the Next Review Date (NRD) only if completed.

Periodic Review

Periodic Review (PR) is time-driven, based on the Next Review Date or a predefined time frame. It initiates at the Due Diligence Stage by default, but it can be configured to start at the Enrich Stage. These Reviews are vital for regulatory compliance and come with a higher priority.

In Periodic Review, all document types that were uploaded in the last approved review are copied over. However, Requirements are paused at the Verification Step. Expired or stale documents are excluded from being copied over.

Merge to inflight Journey

Financial institutions must be able to manage the high numbers of customer-related events across their customers that occur every day. The impact of these events can range from insignificant to those greatly increasing risk to the business, or requiring legally mandated actions and reporting. Some example events, that can be generated from a variety of internal or external systems, include Legal name updates, Full Name updates and Registered Address updates.

The financial institutions must ensure that every event is received, processed and actioned in a reliable way that is appropriately audited and can be reported upon. Different events will have different business and regulatory needs based on the event types, event subtypes and their content. The resulting processing and actions for different events will vary around areas such as prioritization, level of interaction required, or the complexity of the work.

The merge functionality of PKYC enables events to be processed immediately without the need to wait for existing Customer Review Journeys to be completed.

Synchronization of Master profile

For a new Customer Review Case created from a new event, the synchronization of data and re-evaluation of risk happens at the end of the Capture Stage. However, if an event is merged to the inflight Case, the synchronization is performed by calling the SaveWorkFolder Activity in PerformEventActions, directly from the bundle processing.

Case landing stage configurations

When you merge an event to an existing Customer Review Case, the Case automatically jumps back to the Stage defined in the Landing Stage configuration. Only if the Case is already in Due Diligence and the landing stage is also in the same Due Diligence Stage will PKYC restart this Stage, because the actions associated with the event, such as TDD, eScreening, adverse, and requirements, must be re-triggered.

Tip: Stage change or restart can be disabled for particular event types by selecting the If this event is merged into an open case that has passed the configured stage mentioned above, the open case remains at its current stage checkbox.

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Configuring Perpetual KYC Event Type

Custom process configuration

Customer Review types

Quick Review

Full Review

Periodic Review

Merge to inflight Journey

Synchronization of Master profile

Case landing stage configurations

This Topic is available in the following Modules:

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