Five reasons why you should automate your FICA process
26 Sep 2023
There is no doubt that software and digital solutions have forever changed how businesses manage their regulatory compliance. But what is it that businesses are finding so useful and why have so many turned to software to assist with their regulatory compliance needs?
1. Increase in productivity
When discussing compliance the number one complaint is that implementing compliance procedures and requirements are labour intensive across the business.
The benefits of using an automated solution means that repetitive tasks get completed automatically and mundane tasks (like collecting and filing mountains of paperwork) are removed.
In terms of FICA compliance, an example of this is no longer having to manually request nor send countless emails to collect and follow up on customers’ documentation for FICA purposes. Automated software enables you to load a customer with a specific entity type and takes care of emailing the customer to ask for the relevant forms, and will send a follow up email when the incorrect or invalid documentation has been sent.
2. Standardise and enforce a single approach to ensure consistent policies and procedures
As a business grows, the task of ensuring everyone is consistently carrying out the correct procedure becomes more complex. The best software tools allow you to define, create and implement your policy and procedures according to your unique business needs.
According to the FIC Amendment Act, risk rating your customers, to ultimately determine the amount of due diligence to be done, is vital and should be consistently carried out whenever you onboard a customer. Having a configured system that is set up according to your business rules means that when onboarding a client, you are able to enforce that each client is risk rated and thus onboarded consistently across your business, according to your rules.
3. Have easy oversight at the click of a button
Gone are the days where businesses need to spend hours pulling various reports in order to get status updates. Using a centralised software solution means that businesses are able to use dashboards to organise data, so more time can be spent on data interpretation.
For example, in order to meet your FICA requirements, it is important to ensure that each client progresses through all the “FICA required steps”. So in terms of better managing your client onboarding, when using a software solution you should be able to access a view that will allow you to easily see what stage of onboarding your clients are in. In terms of managing where your clients are at in the “FICA process” you could have a dashboard that shows you how many clients are in a “pending” stage as you wait for them to send their documents. You can also have a view to see if clients have appeared on any sanctions lists.
4. Eliminate human error
Compliance is often an onerous task and due to its monotonous nature there is possibility for human error. Automation largely takes away the monotonous work and therefore enables staff to instead focus on decision making.
Software solutions have been created to ensure shorter turnaround times, with higher levels of accuracy, leading to improved and enhanced processes. One example is using a software solution to automate your sanction, DPEP and FPEP screening so that staff no longer have to spend hours searching sanctions lists.
5. Keep up to date with the latest regulatory requirements
Albeit frustrating and sometimes confusing, there is one guarantee when it comes to laws, compliance and regulations and that is they will always be changing. To prevent this, businesses often hire specialists, however for some businesses this simply doesn’t make sense and so they turn to their software providers for guidance and to keep them up to date with their compliance requirements.
Software solutions are often built around the latest requirements, so the best providers will have an in-house compliance team that ensures that the software is up to date with compliance regulations, meaning that your business can now rely on your software provider to keep you up-to-date with the latest regulatory requirements.
To find out how DocFox can automate your KYC process so you can make better informed decisions in a fraction of the time, request a demo.
- FIC issues final demand to the non-compliant Accountable Institutions
- Remain abreast of prescribed regulatory requirements with Sabinet Financial Regulatory Instruments
- Significant developments in reporting beneficial ownership
- Risk and compliance reporting: Legal practitioners not above the law