KYC Overview
Perform onboarding and monitoring checks on your customers.
Introduction to FrankieOne KYC
The FrankieOne Know Your Customers (KYC) helps our clients perform onboarding and monitoring checks on their customers.
By performing KYC checks on their customers, our client fulfills Part B of the AML/CTF legislation.
Regulated businesses must perform KYC on their clients in compliance with AML/CTF to prevent money laundering and terrorist financing.
FrankieOne KYC is extremely beneficial for clients to screen onboarding potential new customers and perform ongoing KYC checks for existing ones.
Features
Rulesets
A ruleset specifies the number of identity information, or data points, provided by the onboarding customer that must match with information on valid information sources. It also specifies whether the identity information must be from a government-issued ID or not.
Example of a Ruleset
An example of a ruleset is 2x2 with gov ID. This means the onboarding customer must meet the following requirements:
- Present an identification document that has two (2) data points, such as name and date of birth (DOB)
- These 2 data points must match in two (2) valid information sources, such as the 1) electoral roll and, 2) credit bureau database.
- The identification document must be government-issued, such as a passport and must match the information in the Australian Government's Document Verification Service (DVS) database.
Recipes
Recipes refer to the collection of verification checks that you require your customer to pass through in order to be onboarded into your application. This can include KYC, AML, Duplicate checks, Blocklist checks, IDV/Biometrics & Fraud checks.
FrankieOne Recipes
FrankieOne has 5 base Recipes that cover the full range of checks that you could run. These are all included in the startup bundle.
The following table shows the different options that are available for the combination of checks that can be performed on your customers. These rulesets validate their identity and suitability, depending on what information you match, and against how many datasets.
| Australia 1 Gov ID | Australia Safe Harbour No Gov ID | Australia Safe Harbour with Gov ID | Australia & New Zealand Safe Harbour | International | |
|---|---|---|---|---|---|
| Profile Checks that will be performed | - 1 Gov ID only - AML Standard - Blocklist - Risk Customer Score | - 2x2 KYC - AML Standard - Blocklist - Risk Customer Score | - 2x2 with Gov ID and KYC - AML Standard - Blocklist - Risk Customer Score | - 2x2 with Gov ID + address - AML Standard - Blocklist - Risk Customer Score | - 1x1 - AML Standard - Blocklist - Risk Customer Score |
| IDs | Driver's Licence, passport, foreign passport, Medicare, Birth Certificate | It is still possible to verify Gov IDs with the rule. What it means is that you don't have to achieve a pass on GovID in order to pass. | Driver's Licence, passport, foreign passport, Medicare, Birth Certificate | Driver's Licence, passport, foreign passport, Medicare, Birth Certificate | Foreign IDs can be checked depending on the country. Generally, it's a National ID or a Passport. |
| Optional extras available to use/ Only charged when used | Biometrics KYB + ABN, ASIC, UBO reports | Biometrics KYB + ABN, ASIC, UBO reports | Biometrics KYB + ABN, ASIC, UBO reports | Biometrics KYB + ABN, ASIC, UBO reports | Biometrics KYB + ABN, ASIC, UBO reports |
| AML Adverse Media is an additional cost | - All sanctions - All PEP levels - Ongoing - 30% fuzziness | - All sanctions - All PEP levels - Ongoing - 30% fuzziness | - All sanctions - All PEP levels - Ongoing - 30% fuzziness | - All sanctions - All PEP levels - Ongoing - 30% fuzziness | - All sanctions - All PEP levels - Ongoing - 30% fuzziness |
| Recommended for | - Non-reporting entities - Not recommended for reporting entities unless you have legal approval | - Reporting entities that do not want to enforce Gov ID must match requirement | Most common set up for reporting entities | Companies needing to verify AU & NZ customers. Based off customer's address. | Companies that need to verify international customers. Based off customer's address. |
Cascade
The term "cascade" refers to the series of failover scenarios that increase the likelihood of customer getting a match and passing the onboarding checks. KYC providers are stacked, which increases pass rates and provides a failover if providers go down. We can theoretically stack as many providers as required.
Example of a cascade
An example cascade of checks.
KYC for KYB
"Know Your Business" or KYB, is the identification of a company to determine the persons responsible for, or are legal representatives of the business.
Performing KYC on UBOs companies is very important. Many international businesses are found to use company structures as a front for fraud/terrorism financing. This organized crime can be masked by a complex web of ownership. Hence, it is important to identify and verify the business and its UBOs.
Multi-ruleset
Running multiple rulesets simultaneously for a single onboarding customer can increase the likelihood of getting a pass, and therefore increase pass rates.
For example, rather than a single ruleset, you can run a 1x1 with Gov ID and a 2x2 check. Getting a pass on either check means that the onboarding customer passes.
Updated about 1 year ago