Fintrac (Financial Transactions and Reports Analysis Centre of Canada), FinCEN (Financial Crimes Enforcement Network) and similar agencies collect and analyze financial information and intelligence on suspected money laundering and terrorist financing activities. Guidelines set out by these agencies require specific documentation to be recorded and retained, including new account applications, account operating agreements, client identification records, account statements, debit/credit notes, large cash transaction records and suspicious transaction activity reporting.
When a customer opens an account, financial institutions are required to request identity documents such as a Driver’s Licence or passport in order to prove the identity of the individual. Typically, these documents are photocopied and kept with the signed application in a filing cabinet at the branch or head office. The disadvantage to this paper based process is that financial institutions don’t have the ability to view KYC information across branches and authorized business partners. When the documentation is needed, staff must request a copy from the holding location. The time and effort involved is long and time-consuming and can be compounded in a broker/dealer scenario where validation of data may span multiple channels. Instances of misplaced and incomplete files make it increasingly difficult to comply with today’s strict regulatory and disaster recovery requirements. Even if KYC records are stored electronically, they are often isolated in disparate systems making it difficult and inefficient to search and retrieve them, especially across multiple locations.
Storing these documents in filing cabinets or even on a network’s shared folders does not provide the level of organization, security or access essential to retaining documentation of this nature. The onus is on companies to take responsibility for and to facilitate the necessary level of transparency. Failure to retain records can result in serious consequences to the financial institution including hefty fines and even imprisonment.
The ability to easily scan, index, and store electronic documents centrally and safely, ease of access and integration with existing banking systems are important considerations when businesses are assessing how to effectively manage KYC documents.
DOXIM ECM Server is a comprehensive enterprise content management solution that enables the capture, storage, search, retrieval, and security of internal files and documents. DOXIM ECM’s unique architecture gives organizations the capability to securely import content into one centralized network with the ability to easily integrate with existing systems to automatically upload information and make it available to authorized employees and other systems.
DOXIM Capture Suite is a suite of production level capture tools that combine robust document scanning and indexing tools with a friendly user-interface that allows users to easily scan, index and upload critical business documents.
By implementing DOXIM ECM Server with DOXIM Capture Suite, businesses can:
Adhere to stringent regulatory and compliance requirements by:
- Using DOXIM ECM as part of their anti money laundering defence
- Capturing and organizing all relevant KYC documents in the DOXIM archive
- Retaining complete, up to date electronic KYC documentation and associated records
- Implementing effective compliance, disaster recovery and business continuity strategies
- Providing the ability to track file access for audit and security purposes
- Allowing ready access to up to date KYC documents from a secure, centralized repository
- Providing secure, web-based, cross branch access to authorized staff from a central location
- Reducing dependence on paper
- Automating paper based processes
- Improving employee efficiency
- Significantly reducing paper usage and handling
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