Offered in a three tier system, enabling banks to have access to the best offering based on the immediate and strategic requirements, the KYC platform enables both sell side and buy side clients to quickly establish and effectively conduct KYC processes and satisfy these rules through a highly controlled and supervised operations platform, reducing regulatory risk and ensuring compliance across multiple jurisdictions.

The eClerx KYC solution addresses key compliance requirements of the major regulatory bodies, both US and International, including the Federal Reserve and Office of the Comptroller of the Currency (OCC) in the United States, which require customer identification, due diligence and record keeping for the purposes of preventing identity theft, fraud, money laundering and terrorist financing. In conjunction, the expansion of these KYC regulatory mandates overlap with FATCA, Dodd Frank and the Legal Identity Identifier (LEI) initiatives. In the wake of these regulations, institutional broker dealers and banks are demanding high quality and cost-effective KYC solutions to manage these complex and burdensome requirements while mitigating risk. Clients leveraging eClerx’s KYC offering are able to more efficiently on-board accounts to start business relationships, minimize suspended accounts due to a lack of KYC completeness, and, along with other critical compliance processes, decrease the probability of illegal activities such as money laundering.

“KYC has come into the regulatory forefront and is an essential component of enterprise risk,” said Larry Tabb, CEO and Founder, TABB Group. “The myriad global and national regulatory frameworks create significant internal challenges within the banks. There is tangible and costly headline risk and reputation damage for organizations which do not properly manage KYC, especially now that the procedures needed to achieve compliance have been expanded.”

“We are seeing record fines that are reaching into the billions of dollars, and many cease-and-desist orders from the OCC due to lack of proper KYC protocols,” said Mahesh Muthu, Associate Principal at eClerx. “As increasingly stringent KYC guidelines are being prescribed by regulatory authorities, we leveraged the best practices developed from our years of experience supporting diverse client requirements for major banks to create a solution that will enable our clients to more easily manage these mandates and proactively manage their portfolio of regulatory risk. We have found that more than 10% of the entities we have reviewed have required a risk re-rating, while more than 2% of entities have been dissolved or result in a negative news hit.”

eClerx’s team has processed more than 350,000 entities, and created configurable work tools to embed varying rules across jurisdictions and risk classifications to deliver structure and control. The firm established KYC metrics and accurate reporting providing business insights, benchmarking data, and eliminating process bottlenecks to aid continuous improvement. The eClerx KYC Solution provides support for buy side institutions to be ready for participation in industry KYC utilities.

Additional features in the product include:

• Risk level and anti-money laundering (AML) classification
• Validation of core customer attributes, including officials, on a periodic basis
• Archival evidence of any changes, and the performance of negative news checks on companies and its officials
• Ability to both cross reference entities and jurisdictions against politically exposed persons (PEP) and blacklisted individuals, and works with banks to adapt policies per client type, jurisdiction and AML classification
• Assured quality assurance levels with variable, per entity pricing, and established processes for leveraging hundreds of public and paid data sources
• Support for Institutional clients, Private Banking and Wealth Management clients, and Retail clients