KYC Type rules for UK questionnaires
In Pega Client Lifecycle Management and Know Your Customer™ version 8.8, the KYC Type rule is a custom rule that you use to define all aspects of a questionnaire displayed in its respective subcase. Examples of such elements of the questionnaire include:
- Displaying the logic of the fields.
- The mandatory, optional, or read-only characteristics of the fields.
- The functionality of attaching files as supporting evidence to specific fields.
The architecture of the KYC Type rules uses the Situational Layer Cake™ model in which you define common rules in foundational layers and specialized rules in incremental upper layers. An incremental layer contains only the delta as compared to the previous layer. This incremental layer primarily uses the booking jurisdiction of the product as a source next to the risk rating and due diligence profile of the customer.
The KYC Type rules that are displayed in the Due Diligence stage are questionnaires realted to Anti-Money Laundering (AML)/Combating the Financing of Terrorism (CFT) regulation.
Display logic of UK questionnaires
When a customer requests or receives an offer for a product that is booked in the UK, a list of KYC Type rules is determined by Pega CLM and KYC application and are displayed to the KYC analyst in Due Diligence stage.
Up to Pega CLM and KYC version 8.7, there are three KYC Type rules that are applicable:
- Global: The Global KYC Type rule is always displayed for every journey. It contains the minimum AML/CFT regulatory standards with which the financial institution must comply, regardless of the country where the customer establishes a business relationship.
- EU: The EU KYC Type rule contains the AML/CFT requirements that are additional to the global requirements, as issued by the European Union, and is thus applicable to all member states.
- United Kingdom: The UK KYC Type rule contains requirements that are additional to the EU requirements that are specific to the UK.
For all three KYC Type rules, there are four questionnaires:
- Two for the customer as an entity: one for Customer Due Diligence (CDD), which is always displayed, and one for Enhanced Due Diligence (EDD), which is displayed only if EDD applies.
- Two for the customer as an individual: one for CDD, which is always displayed, and one for EDD, which is only displayed if EDD applies.
With Pega CLM and KYC version 8.8, there are only two KYC Type rules that are applicable:
- Global: The Global KYC Type rule is always displayed for every journey. It contains the minimum regulatory standards with which the financial institution must comply, regardless of the country in which the customer establishes a business relationship.
- United Kingdom: The UK KYC Type rule contains the EU requirements that are already transposed into national law, with additional requirements that are specific to the UK.
As a result, the regional set of EU KYC Type rules is no longer applicable and displayed.
This change occurred because the UK has withdrawn as a member of the EU. New EU laws do not apply to the UK directly (Regulations) or after implementation in domestic legislation (Directives).
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