As you may be aware, new e-KYC guidelines from MY central bank came into effect on the 30th November 2017.
The guideline is to ensure effective and robust Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) control measures and systems for the provision of online and mobile remittance services. It covers both e-KYC on Malaysia nationals and foreigners (expatriate and foreign workers), and the guidelines set out the minimum requirements and standards that an approved remittance service provider must observe in implementing e-KYC.
Clients of TruNarrative already know that our platform brings fraud detection, identity verification, e-KYC and AML compliance into a single easy-to-configure environment. The remediation of customers becomes simple, frictionless and transparent with all vendors integrated into the one simple to use environment. Our powerful decision engine and workflow capability sit at the heart of a unified management process.
The TruNarrative CBM platform supports multi-country identity check and documents verification capabilities and can facilitate both online and mobile though its omni channels solution.
To meet the standards of the guidelines, FIs need to set and implement policies and procedures to address risks associated with e-KYC, which include enhanced monitoring and reporting of individual AML/KYC. For example, FIs need to verify a customer’s information against independent and credible sources to confirm a customer’s identity – and identify any known or suspected AML/CFT risks associated.
The TruNarrative CBM platform provides both established and emerging sources to conduct AML/CFT checks globally. Other guidelines include the standard to request, sight and maintain records of additional documents required to perform face-to-face customer verifications, as well as clearly define parameters for higher risk customers that are not allowed to transact with the reporting institution through e-KYC.
However, using TruNarrative, FIs can manage any suspected referrals or cases though the case management capabilities (or they can be assigned to the surveillance team for additional document requests). The system also supports configurable parameters associated with risk tolerance as per policy and regulation requirements; and sets the rejection decisions automatically.
For remittance transactions performed by an individual who is a foreign worker, funds can only be remitted to the individual’s home country, with a requirement for the individuals to pre-register the beneficiaries with the FIs when the business relationship is established. FIs need to establish proper internal processes, including having in place appropriate controls and procedures to manage its customers’ requests for any alterations or changes made to the list of pre-registered beneficiaries. This must include procedures for monitoring such requests to identify suspicious patterns.
The TruNarrative CBM can support target countries and beneficiaries’ monitoring by configurable business rules, and also through its white box machine learning capability, which means suspicious pattern of remittance can be detected instantly.
The new e-KYC guidelines are made up of both standards and guidance, and for the guidance points, TruNarrative’s platform will also help.
For example, this rather long-winded guidance point says that clients should verify the customer’s information against a database maintained by relevant authorities, including the National Registration Department and Immigration Department of Malaysia, telecommunication companies, sanctions lists issued by credible domestic or international sources, in addition to the mandatory sanctions lists specified under paragraph 25 of the AML/CFT – Money Services Business (Sector 3) policy document or social media platforms with a broad outreach. Quite a task, but our platform can support both authorised databases and credible sources (including social media channels) and cross data check to ensure verification quality through its open API based platform – which already aggregate proven/relevant third parties’ data sources.
Where there is a request to sight additional documents such as recent utility bills, bank statements, student identification or confirmation of employment, our system can support any enhanced document requests though the case management capabilities and assign a specific working group to verify the bills/statements/documents etc.
For more information on the guidelines from Bank Negara Malaysia, see here.
In conclusion, TruNarrative has it all covered. If you’d like to discuss further, please get in touch or book a demo.