The Legal Area
Usability rules about LutinX’ websites
Ethic, Respect and transparency
KYC & AML
TACKLING IDENTITY VERIFICATION REQUIREMENTS FOR AML AND KYC
The ever-evolving regulatory landscape is forcing financial institutions to solve multiple regulations and compliance rules simultaneously. These regulations dictate a different set of data, documentation, and regulatory classification requirements, putting increased pressure on already stretched compliance, data management, and onboarding teams.
LutinX Regulatory Protocol provides an out-of-the-box repository of rules, which can be easily configured by financial institutions to future-proof against evolving regulatory and operational requirements. The Rules Engine supports the regulations required for investment, corporate and private banks to be compliant, including:
– KYC and AML Regulations e.g., Patriot Act, 3rd and 4th EU Anti Money Laundering Directive, FINRA Rules, etc.;
– Tax Regulations e.g., Common Reporting Standard, FATCA, UK CDOT, and associated inter-governmental agreements;
– Global OTC Derivative Regulations e.g., Dodd-Frank (US), EMIR (EU), Margin Requirements, as well as emerging OTC derivatives rules in APAC (ASIC, HKMA, MAS) and Canada.
– Market Reform Rules e.g., MiFID II
BENEFITS OF USING LUTINX
DRIVE DIGITAL TRANSFORMATION
Gain agility and maximize operational efficiency by centralizing onboarding and client lifecycle management across multiple jurisdictions and lines of business.
IMPROVE TIME TO REVENUE
Expedite client onboarding and ensure best-practice compliance with our rich regulatory rules engine and sophisticated workflow capabilities.
ENHANCE CLIENT EXPERIENCE
Provide a more consistent, digital experience across all customer-facing channels powered by a seamless, 360-degree view of each client.
SOLVE REGULATORY OBLIGATIONS
Ensure compliance with a wide range of global and regional AML, KYC and Tax regulations across the entire length of the client lifecycle.
SOME MORE: THE GDPR
ON MAY 25TH, 2018, THE GENERAL DATA PROTECTION REGULATION (GDPR) CAME INTO FULL FORCE IMPACTING ANY BANK IN THE WORLD THAT STORES OR PROCESSES PERSONAL INFORMATION ON EU CITIZENS.
GDPR, one of the most lobbied regulations in the EU, marks a significant development in the field of data protection law. It mandates banks to undertake a significant amount of change in terms of how they organize their processes, operations and technologies to help meet the stringent requirements that this regulation demands.
With extreme penalties at stake, GDPR poses a massive operational, compliance and technological challenge for banks due to the volume of data and documentation collected, stored and processed on private individuals.
The date that GDPR came into effect will mark the passing of 23 years since the Data Protection Directive initially took root in 1995. the world has become a more digitalized and globalized place, and our data protection legislation must be strengthened to keep up with these advances.
Here we present you the GPDP key definitions
CONSENT
A potential legal basis for processing, and a must-have for marketing purposes. Must be freely given, informed, and given explicitly by statement or action. Silence or inactivity may no longer be relied upon.
DATA BREACH
A security incident relating to the destruction, misuse or loss of, or accidental or unlawful access to personal information.
DATA SUBJECT
A natural person whose data is being processed.
PRIVACY, BY DESIGN & BY DEFAULT
GDPR calls for organisations to consider data protection and privacy by design and default, essentially requiring them to include data protection principles from the very beginning of a new project or system design, rather than as an afterthought.
ANTI-MONEY LAUNDERING (AML)
LUTINX AML IS A RULES-DRIVEN, RISK-BASED APPROACH TO SOLVING ANTI-MONEY LAUNDERING COMPLIANCE OBLIGATIONS ACROSS MULTIPLE JURISDICTIONS
LutinX AML compliance software is a rules-driven, risk-based solution to solving Anti-Money Laundering compliance obligations across multiple jurisdictions, including BSA, 4th EU Anti-Money Laundering Directive & APAC-specific regulations.
Tackling AML Compliance Regulations
Anti-Money Laundering compliance involves knowing who you are doing business with, identifying where the source of funds originates, and determining all known counterparties and associations’ identities. Financial institutions must undertake a rigorous approach to AML compliance with severe reputational and financial penalties on the line.
LutinX Anti-Money Laundering is a robust and proven AML compliance software solution that seamlessly integrates with the LutinX Client Lifecycle Management suite.
Streamline AML Compliance & Accelerate Onboarding
LutinX’s award-winning Anti-Money Laundering and Client Lifecycle Management platform ensures compliance with all global and local AML regulations, from initial onboarding to an ongoing client due diligence throughout the client lifecycle.
4th AML Directive Overview
The Fourth EU Anti-Money Laundering Directive (4MLD), effective from June 26th, 2017, is intended to deliver a greater focus on ultimate beneficial ownership and an enhanced risk-based approach to compliance.
The Directive provides stricter requirements for compliant Client Lifecycle Management and Know Your Customer processes, strengthens risk-based approaches, and prompts the removal of Customer Due Diligence (CDD) exemptions.
The Fifth EU Anti-Money Laundering Directive, set for implementation in 2018, will enforce this further by introducing a stricter beneficial owner threshold of 10% for high-risk entities.
Rules-Driven Approach Required to Comply with 4th AML Directive
Financial institutions must be capable of delivering a robust, risk-based approach to AML compliance to comply with the 4th AML Directive.
This involves understanding precisely who you are doing business with, identifying where the sources of funds originate, and accurately determining the identities of all known counterparties and associations to the client organization.
Financial organizations need to implement a rigorous approach to 4MLD & 5MLD compliance with severe reputational and financial penalties on the line.
Achieve 4th AML Directive Compliance
The LutinX Anti-Money Laundering solution is a robust and proven AML compliance software solution that seamlessly integrates with LutinX Client Lifecycle Management to ensure consistent compliance with the 4th AML Directive, from initial onboarding to ongoing due diligence throughout the client lifecycle.
Our integrated enterprise-wide Client Lifecycle Management platform enables financial institutions to enhance their risk and regulatory management by gaining a detailed understanding of every legal entity with which it engages in business.
LutinX combines intelligent regulatory rules logic with a centralized client and counterparty data, enabling financial institutions to comply with Australia’s AML legislation efficiently.
AUSTRAC Overview
AUSTRAC issued the AML CTF Act in 2006, which requires reporting entities to verify a customer’s identity before providing a designated service to the customer. The AML CTF Rules sets out the minimum customer identification information and information about beneficial owners, which reporting entities must obtain and verify. Reporting entities are also required to identify and declare whether a customer or the customer’s beneficial owner is a ‘politically exposed person’ (PEP).
Rules-Driven Approach Required to Comply with AUSTRAC
AUSTRAC compliance creates significant operational challenges for financial organizations tasked with efficient onboarding and client lifecycle management. Covered financial institutions must ensure they comply with the AML CTF Act or face severe financial and reputational penalties. To improve time to revenue and enhance the client experience, banks must adopt a rigorous rules-driven AML process capable of delivering consistent compliance throughout the client lifecycle.
Simplifying AUSTRAC Compliance
LutinX’s rules-driven Anti-Money Laundering and Regulatory Rules Engine compliance solutions are uniquely designed to protect your financial organization against AUSTRAC regulations. We deliver a unified Client Lifecycle Management solution, comprised of Client & Counterparty Data Management, AML / KYC / Tax & Regulatory Compliance. The LutinX platform provides sophisticated client & account-related workflows, which significantly reduces client onboarding and operational time and costs.
HKMA AML Overview
On 1 March 2018, The Hong Kong Monetary Authority (HKMA) will enact the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Bill 2017.
This requires covered financial institutions to comply with statutory customer due diligence (CDD) and record-keeping requirements for the relevant individuals’ HKMA register.
These enhancements aim to bring Hong Kong’s regulatory regime in line with FATF recommendations and to safeguard the integrity of Hong Kong as a global financial center.
Robust Approach Required to Comply with HKMA AML
HKMA AML compliance puts increased focus and pressure on customer due diligence (CDD) and KYC processes for financial institutions, adding significantly to the overall cost of compliance, potentially increasing the time to revenue for most banks and impacting the client experience.
Domestic and foreign banks must comply with Hong Kong regulations or face severe financial and reputational penalties.
Achieve HKMA AML Compliance
LutinX’s intelligent Anti-Money Laundering and Regulatory Rules Engine compliance solutions are designed specifically to protect your financial institution against evolving or new HKMA regulations.
Our end-to-end Client Lifecycle Management solution comprises Client & Counterparty Data Management, AML / KYC / Tax & Regulatory Compliance and sophisticated Client Onboarding & Account Management workflow.
Together, these solutions significantly accelerate client onboarding and compliance through increased operational efficiency and straight-through processing.
MAS Act Overview
The MAS Act led to the Monetary Authority of Singapore (MAS) in 1971.
This AML/CTF legislation obliges financial institutions to put robust controls to detect and deter the flow of illicit funds through Singapore’s financial system.
This includes the need to identify and know their customers (including beneficial owners), to conduct regular account reviews, and to monitor and report any suspicious transactions.
Innovative Approach Required to Comply with the MAS Act
Global financial institutions must ensure complete KYC compliance at every point in the client lifecycle to comply with Singapore’s wide-ranging AML legislation.
The alternative is severe financial and reputational penalties.
Financial organizations must adopt an innovative and rigorous approach to customer due diligence and KYC procedures and processes to comply with enhanced regulatory rules, improve the client experience, and reduce onboarding time and costs.
Streamline MAS Act Compliance
LutinX’s intelligent Anti-Money Laundering and Regulatory Rules Engine solutions enable banks to comply fully with Singapore’s AML/CTF regulatory requirements.
The solution integrates seamlessly with a wide range of data providers, including beneficial registers, and delivers a centralized source of golden data to ensure all AML and KYC rules and regulations are fully adhered to
WE FOLLOWS THE RULES
FOR PLACING CLIENTS AT THE HEART OF THE DIGITAL TRANSFORMATION
A risk-based approach that fits your KYC IDV requirements
Build the registration flow that’s right for your business. When it comes to identity verification requirements for KYC and AML compliance, you need a risk-based solution that can fit in with your more comprehensive plan to address these regulations. We’ve created tailored configurations of our identity verification platform, so you can adjust LutinX to find the right balance of convenience and security to match the level of risk you’re comfortable with and the individual risk profiles of your users.
For example, you can use a document-first onboarding process to either supplement traditional credit data checks or replace them altogether. In the first instance, only users who don’t match traditional data sources need to perform an additional document or biometric check to confirm their identity. In the second instance, all users need to complete a biometric step at onboarding—giving you the assurance that each user is genuine and the valid owner of their ID.
Meet regulatory obligations and delight your customers
You don’t need to compromise on user experience to meet KYC and AML regulations’ identity verification requirements.
LutinX helps you balance both priorities with user-centric design, adding extra smoothness to areas where you need to ask your customers for more data to verify their identity.
LutinX’s SDKs include glare and blur detection, which give real-time feedback to help users submit only high-quality pictures for document verification. Easy. And our SDKs work across all platforms—from desktop to tablet and smartphone—so users can pick what works for them.
No wonder we have one of the best conversion rates in the market.
For all aspects of development, we have prepared a dedicated developer guideline.
