A fully automated Know Your Customer (KYC) solution for achieving superior Anti-Money Laundering (AML) and Counter Terrorism Finance (CTF) compliance has been launched by Encompass Corporation. The software platform enables banks to meet the increasingly demanding regulatory requirements of The European Union’s Fourth Anti-Money Laundering Directive, which comes into force on the 26 June 2017.
The 4th AML Directive includes fundamental changes to the existing procedures, which will impact banks. Changes to Customer Due Diligence (CDD), the requirement for a central register for beneficial owners, a focus on risk assessments, and the new rules for politically exposed persons (PEPs) within the UK, all present a challenge for banks who struggle to tailor legacy systems or keep up with manual process.
Encompass Confirm, the new KYC platform for AML/CTF compliance is fully automated and can be tailored to the banks specific regulatory and risk criteria. Fully tried and tested with Uncover, Encompass’ product for restructuring and insolvency practitioners, this new system for KYC instantly aggregates and cross-refers information from 12 data providers in real time including Companies House, Experian, Equifax, The Gazette, Dun & Bradstreet, 192.com, Bureau Van Dijk, Creditsafe, redflagalert, C6 Group, Kyckr and Land Registry.
Trials of the platform have shown that on average using Encompass Confirm is 13 times faster than current systems and can cut manual costs by as much as 80%. Being automated, it also provides a full audit trail including an instant view of beneficial ownership and control, both key parts of the anti-money laundering compliance requirements.
Wayne Johnson, CEO from Encompass said: “The fourth Anti-Money Laundering Directive adds both an extra layer of complexity, and requirement for greater clarity of process and auditing including maintaining accurate and current information on beneficial ownership. It’s something a lot of businesses are struggling to prepare for. By automating the process, [building societies] can reduce the risks of failure to comply and also vastly improve efficiency, both at the point of need and, crucially, as and when the information needs to be updated or interrogated in the future.”