Software Requirement Specification (SRS) for KYC Verification App

1. Introduction:

1.1 Purpose:

The purpose of this document is to define the requirements for the development of a
KYC Verification App with KYC, KYB, and POA solutions, incorporating AI chatbot
customer support.

1.2 Scope:

The app will provide a comprehensive KYC verification system with features such as
Case Management, Performance Management, Compliance Management, Analytics,
Risk Management, Transaction Monitoring, Watch List, Customer Engagement, Risk
Assessment, Behavioral Analytics, Compliance Reporting, Internal Fraud Monitoring,
PEP Screening, and Identity Verification.

2. Functional Requirements:

2.1 User Authentication and Authorization:

● Use Case 1: Login
● Description: The system shall provide a secure user authentication
mechanism.
● Requirements:
● The system should store user credentials securely.
● Users must undergo authentication using a username and
password.
● Failed login attempts should trigger account lockout mechanisms.

2.2 Case Management:

● Use Case 2: Create KYC Case
● Description: The system should allow KYC analysts to create, manage, and
track KYC verification cases.
● Requirements:
● KYC analysts can input and edit customer information.
● The system should support the attachment of relevant KYC
documentation.
 ● Each case should have a unique identifier and status (e.g., pending,
approved, rejected).

2.3 Performance Management:

● Use Case 3: Monitor Performance
● Description: The system shall provide tools to measure and monitor the
performance of KYC verification processes.
● Requirements:
● Performance metrics should include case processing time, error
rates, and throughput.
● Historical performance data should be accessible for analysis.

2.4 Compliance Management:

● Use Case 4: Compliance Checks
● Description: The system shall perform compliance checks based on
regulatory requirements.
● Requirements:
● Implement checks for AML (Anti-Money Laundering) and CFT
(Countering the Financing of Terrorism).
● Generate alerts for non-compliance, providing details and
recommended actions.

2.5 Analytics:
● Use Case 5: Analyze KYC Data
● Description: The system shall provide analytical tools for monitoring and
improving the efficiency of KYC processes.
● Requirements:
● Analytics should include data trends, success rates, and
bottlenecks.
● Visual representations such as charts and graphs should be
available.

2.6 Risk Management:

● Use Case 6: Assess Customer Risk
● Description: The system shall implement risk assessment tools to
evaluate and mitigate potential risks associated with customers.
● Requirements:
 ● Assess customer risk based on transaction history, behavior, and
compliance status.
● Assign risk levels to customers.

2.7 Transaction Monitoring:

● Use Case 7: Monitor Transactions
● Description: The system shall enable real-time monitoring of customer
transactions for suspicious activities.
● Requirements:
● Implement algorithms to detect abnormal transaction patterns.
● Flag suspicious transactions for further investigation.

2.8 Watch List:

● Use Case 8: Watch List Check
● Description: The system shall integrate a watch list to identify and flag
individuals or entities with known criminal or prohibited activities.
● Requirements:
● Regularly update the watch list database.
● Flag matches found in the watch list during KYC verification.

2.9 Customer Engagement:

● Use Case 9: Communicate with Customer
● Description: The system shall facilitate communication between KYC
analysts and customers regarding the KYC verification process.
● Requirements:
● Provide messaging or notification features for KYC analysts to
communicate with customers.
● Update customers on the status of their KYC verification.

2.10 Behavioral Analytics:

● Use Case 10: Detect Anomalies
● Description: The system shall utilize behavioral analytics to detect
anomalies and potential fraudulent activities.
● Requirements:
● Analyze customer behavior for patterns consistent with fraudulent
activities.
● Flag anomalies for further investigation.
2.11 Compliance Reporting:
● Use Case 11: Generate Compliance Report
● Description: The system shall generate comprehensive reports for
compliance audits and reporting purposes.
● Requirements:
● Reports should include details on compliance status, audit trails,
and any exceptions.
● Reports should be exportable in standard formats.

2.12 Internal Fraud Monitoring:

● Use Case 12: Monitor Internal Activities
● Description: The system shall implement tools to monitor and detect
internal fraud within the organization.
● Requirements:
● Monitor user activities within the system for unusual behavior.
● Generate alerts for suspicious internal activities.

2.13 PEP Screening:

● Use Case 13: Screen for PEPs
● Description: The system shall integrate tools for Politically Exposed
Person (PEP) screening.
● Requirements:
● Regularly update the PEP database.
● Flag matches found during KYC verification.

2.14 Identity Verification:

● Use Case 14: Verify Identity
● Description: The system shall implement robust identity verification
methods, including document verification and biometrics.
● Requirements:
● Support document upload for identity verification.
● Integrate biometric verification if available (e.g., fingerprint or facial
recognition).

3. Non-Functional Requirements:
3.1 Performance:
● Description: The system should meet certain performance criteria to ensure
responsiveness and efficiency.
● Requirements:
● The system should load KYC verification cases within 3 seconds.
● The response time for customer queries through the AI chatbot should be
under 2 seconds.
● The system should handle concurrent users without a significant
degradation in performance.

3.2 Security:
● Description: The system must adhere to high-security standards to protect
sensitive customer information.
● Requirements:
● User data should be encrypted during transmission using secure
protocols.
● Access to KYC verification data should be role-based and require
multi-factor authentication for KYC analysts.
● Regular security audits and vulnerability assessments should be
conducted.

3.3 Scalability:
● Description: The system should be capable of handling increased load as the
user base grows.
● Requirements:
● The architecture should be designed to scale horizontally to
accommodate a higher number of concurrent users.
● The system should be able to scale seamlessly with an increase in the
volume of KYC verification requests.

3.4 Reliability:
● Description: The system should be reliable and available for use whenever
required.
● Requirements:
● The system should have an uptime of at least 99.9%.
 ● There should be mechanisms in place for automated failover and recovery
in case of system failures.

3.5 Usability:
● Description: The user interface should be intuitive and easy to use for KYC
analysts and administrators.
● Requirements:
● The interface should be designed following industry best practices for
usability.
● Training materials and documentation should be provided to assist users
in becoming familiar with the system.

3.6 Compliance:
● Description: The system must comply with relevant data protection and privacy
regulations.
● Requirements:
● The system should adhere to GDPR, HIPAA, or any other applicable data
protection regulations.
● Regular compliance checks and updates should be performed to ensure
ongoing adherence to regulations.

3.7 Accessibility:
● Description: The system should be accessible to users with disabilities.
● Requirements:
● The user interface should adhere to WCAG (Web Content Accessibility
Guidelines) standards.
● Provide alternative text for images and ensure keyboard navigation is
supported.

3.8 Disaster Recovery:

● Description: The system should have measures in place for disaster recovery to
minimize data loss and downtime.
● Requirements:
● Regular backups of KYC verification data should be performed.
● A disaster recovery plan should be documented and tested periodically.

3.9 Data Backup and Retention:

 ● Description: The system should implement robust data backup and retention
policies.
● Requirements:
● Regularly back up KYC verification data, and maintain backups for a
defined retention period.
● Implement secure data disposal methods for information that is no longer
needed.

3.10 Technical Support:

● Description: Adequate technical support should be available to address issues
and queries promptly.
● Requirements:
● Provide a helpdesk or support portal for users to report issues.
● Ensure timely responses to support requests, with a defined service level
agreement (SLA).

3.11 Integration Capabilities:

● Description: The system should be capable of integrating with external systems
and services.
● Requirements:
● Support APIs for seamless integration with third-party services.
● Ensure compatibility with commonly used browsers and devices.

3.12 Logging and Auditing:

● Description: The system should maintain detailed logs for auditing purposes.
● Requirements:
● Log all user activities, especially those related to KYC verification
approvals and rejections.
● Retain logs for a defined period, and ensure they are tamper-evident.

4. AI Chatbot Performance:
● Use Case 15: AI Chatbot Interaction
● Description: The AI chatbot should meet certain performance and
responsiveness criteria.
● Requirements:
 ● The chatbot should respond to user queries within 2 seconds.
● The chatbot should be capable of handling a concurrent user load
without performance degradation.

5. Constraints:
● Description: Constraints are factors that may limit the options or capabilities of
the system.
● Requirements:
​ Regulatory Compliance:
● The system must adhere to data protection and privacy regulations
relevant to the jurisdictions in which it operates, including but not
limited to GDPR, HIPAA, and local data protection laws.
​ Technological Compatibility:
● The system must be compatible with industry-standard browsers
such as Chrome, Firefox, and Safari.
● The app should be responsive and functional across various
devices, including desktops, tablets, and smartphones.
​ Infrastructure Requirements:
● The infrastructure supporting the KYC Verification App must meet
specified technical requirements, including adequate server
capacity, storage, and network bandwidth.
​ Data Security:
● All customer data must be stored and transmitted securely using
encryption protocols.
● Access to sensitive data must be restricted based on roles and
responsibilities.
​ Compliance with Company Policies:
● The development and operation of the KYC Verification App must
comply with the company's internal policies, procedures, and
ethical guidelines.
​ Accessibility Standards:
● The user interface must adhere to Web Content Accessibility
Guidelines (WCAG) standards to ensure accessibility for users with
disabilities.
 ​ Integration with External Systems:
● Integration with external systems, third-party APIs, and services
must be in compliance with the terms of service and security
requirements of those entities.
​ Legal and Jurisdictional Considerations:
● The system must operate within the legal frameworks and
jurisdictional boundaries of the regions in which it is deployed.

6. Assumptions:

​ User Connectivity:
● Assumption: Users are assumed to have reliable internet connectivity and
the necessary hardware (computers, smartphones, or tablets) to access
the KYC Verification App.
​ Regulatory Compliance Understanding:
● Assumption: KYC analysts and developers are assumed to have a good
understanding of the regulatory compliance requirements relevant to the
jurisdictions in which the KYC Verification App will operate.
​ Hardware and Software Compatibility:
● Assumption: The KYC Verification App assumes compatibility with
commonly used web browsers, including Chrome, Firefox, and Safari. It is
also assumed that the application is compatible with widely used
operating systems.
​ User Training:
● Assumption: Users, particularly KYC analysts and administrators, are
assumed to undergo training on how to use the KYC Verification App.
Training materials and documentation will be provided for user education.
​ Data Accuracy:
● Assumption: The accuracy of customer data provided during the KYC
verification process is assumed. Inaccuracies in the provided data may
impact the effectiveness of the verification process.
​ AI Chatbot Understanding:
● Assumption: Users interacting with the AI chatbot are assumed to have a
basic understanding of natural language and will use the chatbot for
general inquiries and support related to the KYC process.
 ​ Security Measures:
● Assumption: Security measures, such as firewalls and intrusion detection
systems, are assumed to be in place to protect the KYC Verification App
and its associated data.
​ Compliance with Company Policies:
● Assumption: The development and operation of the KYC Verification App
are assumed to comply with the company's internal policies, procedures,
and ethical guidelines.
​ External Service Availability:
● Assumption: External services, APIs, and third-party integrations critical to
the KYC Verification App are assumed to be available and operational
when required.
​ Regulatory Stability:
● Assumption: The regulatory landscape in the jurisdictions where the KYC
Verification App operates is assumed to remain stable. Changes in
regulations may require adjustments to the system.
​ Accessibility Requirements:
● Assumption: Users are assumed to have access to devices and
technologies that enable them to interact with the KYC Verification App in
an accessible manner. Accessibility requirements align with industry
standards.
​ Stakeholder Collaboration:
● Assumption: There is an assumption of ongoing collaboration and
communication among stakeholders, including IT, R&D, compliance teams,
and end-users, to address evolving requirements and challenges during
the development lifecycle.

7. Glossary:
To ensure clarity and a shared understanding of terms and acronyms used in the
document, a glossary is provided below:

​ KYC:
● Definition: Know Your Customer. The process of verifying the identity of
customers, typically for regulatory compliance and risk management
purposes.
​ KYB:
● Definition: Know Your Business. Extends the KYC process to include the
verification of business entities, their ownership, and business activities.
​ POA:
● Definition: Proof of Address. Documentation provided by a customer to
verify their residential address.
​ AI:
● Definition: Artificial Intelligence. The simulation of human intelligence in
machines that are programmed to think and learn like humans.
​ Chatbot:
● Definition: A computer program designed to simulate conversation with
human users, especially over the internet.
​ AML:
● Definition: Anti-Money Laundering. Measures and regulations in place to
prevent and detect activities that involve illegally obtained funds.
​ CFT:
● Definition: Countering the Financing of Terrorism. Measures to prevent and
combat the financing of terrorism.
​ GDPR:
● Definition: General Data Protection Regulation. European Union regulations
designed to protect the privacy and personal data of individuals.
​ HIPAA:
● Definition: Health Insurance Portability and Accountability Act. Legislation
in the United States that sets standards for the protection of sensitive
patient health information.
​ WCAG:
● Definition: Web Content Accessibility Guidelines. Guidelines for improving
web accessibility for people with disabilities.
​ API:
● Definition: Application Programming Interface. A set of rules that allows
one software application to interact with another.
​ SLA:
● Definition: Service Level Agreement. A commitment between a service
provider and a client, outlining the expected level of service.
​ VPN:
● Definition: Virtual Private Network. A technology that extends a private
network across a public network, providing a secure connection.
​ PEP:
● Definition: Politically Exposed Person. An individual who is or has been
entrusted with a prominent public function.
​ WCAG:
 ● Definition: Web Content Accessibility Guidelines. Guidelines for improving
web accessibility for people with disabilities.
​ UI:
● Definition: User Interface. The point of interaction between the user and
the system, including screens, pages, and graphical elements.
​ API:
● Definition: Application Programming Interface. A set of rules that allows
one software application to interact with another.

8. Revision History:
Version 1 - Approved by Adam Group IT R&D Division(#1701575131#)

● Date: 04/12/2023
● Time: 3:46 AM
● Approver: FAISAL
● Changes Made: This version includes the initial set of requirements for the KYC
Verification App and has been reviewed and approved by the Adam Group IT R&D
Division.

9. Approval:
Approval of Software Requirement Specification (SRS) for KYC Verification App

Document Title: Software Requirement Specification for KYC Verification App

Version: 1

Date: 04/12/2023

Time: 3:16 AM

Approver: FAISAL

Reviewers:

● SHINAS -IT#5598631
● SHAMEELA-FIN#6587169
● BISMA -CLA#1459752
 ● MAZZ-AUD#0000568

Approval Statement:

I, FAISAL as the head of R&D Adam group, have reviewed the Software Requirement
Specification (SRS) for the KYC Verification App, Version 1, dated 04/12/2023, at 3:16
AM. I hereby approve this document as the official and authorized representation of the
requirements for the KYC Verification App.

Review Comments and Changes:

● No review comments or changes were proposed during the review process.

Distribution:

● All employees of Adam technologies

● Authorized employees of Adam group