A Large Financial Institution in South Africa

Executive Summary

A Large Financial Institution in South Africa (hereafter referred to as the “Financial Institution”) administers long-term insurance claims for occupational injuries and diseases. To enhance their compliance with the Financial Intelligence Centre Act (FIC Act), the Financial Institution implemented XTND’s VeriX Verification and Screening Solution. This case study explores the integration process, challenges, solutions implemented, and the outcomes of adopting the VeriX system.

Introduction

The Financial Institution operates in an environment highly regulated with stringent requirements for Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance. XTND, with extensive experience in background screening and ID verification risk management, offers the VeriX solution tailored to meet these regulatory demands.

Objectives

• To implement a robust KYC and AML compliance system.
• To streamline the client onboarding process.
• To mitigate risks associated with money laundering and terrorist financing.

Methodology

The XTND VeriX system operates as an advanced identity verification platform using multiple layers of security and compliance checks to confirm individual identities. Here’s how VeriX works, broken down step by step:

1. User Onboarding:
   The user logs onto the VeriX platform. This could be a representative of the Financial Institution who is responsible for conducting verifications for employees, customers, or other parties.
2. Verification Request:
   The user initiates a verification request by submitting the individual’s identification number through the VeriX interface. This serves as the starting point for the background check.
3. Consent Automation:
   VeriX automatically sends a consent request to the individual whose information is to be verified. This step ensures that the verification process remains compliant with privacy laws by obtaining permission before proceeding with personal data checks. Once consent is given, the signed authorization is securely received with an audit trail by VeriX, which is essential to meet regulatory standards.
4. Background Checks and Screenings:
   With proper consent, VeriX proceeds to perform a series of comprehensive background checks. These checks include but not limited to ID Verification, credit checks, property ownership, sanctions careening and social media screening. VeriX accomplishes this by leveraging advanced technology and global data sources to quickly gather and verify information.
5. Compliance Assurance:
   Throughout the process, VeriX ensures that all verifications are conducted in line with major regulatory requirements such as GDPR, NCA framework, POPIA, CIS, CSF, NIST, and ISO 27001/2. This compliance feature minimizes risks associated with regulatory offences and potential legal penalties.
6. Integration and Workflow Management:
   VeriX’s design supports effortless integration into the Financial Institution’s existing systems and processes, allowing seamless transition and continuous user access without any interruptions. Internal operational workflows are managed within VeriX, ensuring that the verification processes are efficient and organized.
7. Feedback and Reporting:
   VeriX has end-to-end automated systems that continuously provide feedback and generate reports. These reports keep users informed about the progress and outcomes of the identity verifications and can be used for record-keeping, audit trails, and regulatory reassurance.