CDD On Demand

The European Union has announced restrictive measures in response to the crisis in Ukraine. Our partner Acuris Risk Intelligence has issued new statements regarding the current sanctions environment against Russia. This statement means that Acuris Risk Intelligence will make every effort to incorporate any changes into the database within 24 hours. Since the link between SCOPE CDD On Demand and Acuris Risk Intelligence is real-time, this means that the results are also visible in the compliance check within 24 hours. Sanction lists list individuals and entities that are subject to financial restrictions to prohibit counterterrorism regimes and money laundering around the world. When doing business, you naturally want to be sure you are building relationships with the right people. Therefore, it is important to properly screen the business partner before entering into a business relationship. With CDD On Demand Solution you can monitor your customers on a daily basis. If during the daily monitoring a possible match is found for one of the persons or companies on the monitoring list, you will receive a notification. If you receive a notification, you can take immediate action. The monitor function on CDD On Demand is valid for one year. As a user, you have the option of extending this automatically.  Together with our partners, we provide an up-to-date software platform that you can rely on.

The Know Your Customer on boarding process

Each asset manager has its own onboarding process and has interpreted and designed the substantive details as it sees fit. This can - obviously unintentionally - result in fines from the authorities because the asset manager does not comply with the laws and regulations. Working with Wijnstekers Financial Law, we have made the onboarding process as correctly as possible compliant with MiFID, MiFID II and the GDPR. 

The onboarding process

The MiFID and MiFID II regulations stipulate that various details of a person must be recorded in order to be able to provide appropriate investment advice. 

The know your customer on boarding process that is documented in the SCOPE KYC Cloud Portal, is constructed in collaboration with Wijnstekers Financial Law, in order to comply with MiFID and MiFID II as closely as possible. 

Besides MiFID and MiFID II, the new regulation for data protection; the GDPR (General Data Protection Regulation) is also an important factor to consider. By making the software accessible to both the asset manager and the client, a large part of the GDPR has been fulfilled. 

Which data is stored?

  • Personal situation

    First of all, the personal situation of the client is recorded. In addition to name and address information, the family situation is also requested, as this can also influence the course of the assets.

  • Knowledge and experience

    It is also important to consider the knowledge and experience of the client. In this step, education is recorded, as well as knowledge and experience with financial products such as bonds and shares.

  • Financial situation

    The financial situation is of course important for choosing a good investment strategy. Assets, debts, income and expenses are recorded.

  • Goals

    Objectives are also set as part of the financial situation. For example: how much return of investment does the client want in twenty years. It is calculated whether these objectives are feasible and in which investment profile investments must be made.

  • Risk tolerance

    Based on the financial situation and investment objective(s), the EPI-Engine performs Monte Carlos simulations to provide insight into what can happen to the assets in different stock market climates. In addition, the SCOPE KYC Cloud Portal includes a psychometric risk tolerance test to estimate what risk the client considers acceptable.

  • Documenting

    The final step is to choose a risk profile and a matching investment strategy. Then all the steps are converted to a PDF document, which can be signed by both parties.

The demo videos below explain step by step how the inventory works

Continuously test the KYC questions

Noëlle Wijnstekers is the legal expert for the necessary KYC knowledge and for testing the SCOPE KYC Cloud solution against the applicable regulations. We will continue to consult Wijnstekers Financial Law for the legal aspects of the SCOPE KYC Cloud solution and we will have the product tested regularly.