Enterprise Compliance Platform
Solve all regulations on one platform – efficiently and cost-effectively
Fenergo’s Regulatory Compliance Management solution is a single, end-to-end enterprise solution that is designed to support KYC and compliance teams to comply with immediate regulatory challenges easily and efficiently, whilst future-proofing against continually evolving or newly introduced regulations such as FATCA, Dodd-Frank, EMIR and MiFID II to name a few.
Fenergo’s Regulatory Compliance solution enables institutions to take a ‘horizontal’ approach to achieving the highest level of compliance across all regulations, while introducing key operational efficiencies, eliminating the need for costly add-on modules or heavy IT requirements and, ultimately, reducing the total cost of compliance.
The solution helps financial institutions to identify, classify, evidence and report on legal entities in a seamlessly efficient way. As an advanced rules-based engine, the Fenergo Enterprise Compliance solution uses five key pieces of data to produce a policy that dictates the route or journey an institutional client or legal entity will go through to be onboarded. These data inputs include:
- Legal entity type – is it a fund, listed company, private company, trust etc.?
- Country – i.e. in what country is the legal entity being onboarded?
- Legal entity role – i.e. what role they will perform e.g. is it a swap dealer, broker, FX trader, a deposit client etc.?
- Booking entity – i.e. from a bank’s perspective, against what internal legal entity will they be booked?
- Products – i.e. what products does the client want to trade?
Depending on the specific information provided, each legal entity will take different routes based upon the policy that’s been assigned to them. For example, if a US legal entity, classified as a Swap Participant is being onboarded, we know that being a US entity, the regulatory onboarding process will need to comply with the requirements under the US Patriot Act. Its role as a Swap Participant also means that it needs to undergo classification under the Dodd-Frank Act for the regulation of swap markets and the reform of OTC derivatives.
When all of these data points are inputted into the solution, Fenergo’s Enterprise Compliance system will assign a policy to that particular legal entity, which will determine the
- the data that needs to be captured
- the documentation that needs to be collected
- the KYC questions that need to be answered
- all the regulations that need to be supported
- the risk assessment that needs to be undertaken
- the classifications that needs to be completed.
The Fenergo Regulatory Compliance solution adopts a risk-based approach to onboarding by assigning a risk-rating based on the data provided. This risk score dictates the level of due diligence the legal entity will have to undergo – either a standard level of due diligence (CDD) or an enhanced level of due diligence (EDD) for a higher-risk entity. In addition, each entity will also undergo ongoing due diligence (ODD) as their risk status changes over time and the system facilitates event-driven reviews based on materially significant changes in data, enabling the institution to identify and prevent evolving threats.
The solution also conducts AML checks on the legal entity, enabling the financial institutions to undertake either a simplified or a full AML check based on the data provided and the risk-rating assigned. This will include the identification of beneficial owners, particularly the ultimate beneficial owner (UBO), helping to keep your financial institution fully complaint.