KYC Registry Means Central Source for Client Data

KYC Registry

KYC Registry Means Central Source for Client Data

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6 KEY BANKS SIGNED UP FOR GLOBAL KYC REGISTRY

Swift, the global messaging system, has entered into a memorandum of understanding with six key banks (Bank of America Merrill Lynch, Citibank, Commerzbank, JPMorgan, Societe Generale & Standard Chartered) to develop Swift’s KYC (Know Your Customer) Registry.

The KYC Registry means a central source for client data, compiling and disseminating the KYC due diligence information required by banks. A pilot program is expected to begin mid-year and go live at year end.

CENTRAL RESOURCE PROVIDES FOR SHARING OF CLIENT DATA

KYC compliance provides for a myriad of information to be exchanged between banks when dealing with one another. Information such as documentation, shareholder and executive profiles and risk analyses.

Considering the ~7000 banks involved in company banking, Luc Meurant (Head of Marketing & compliance at Swift) estimates this amounts to 103 million bilateral exchanges of data every 1, 2 or 3 years (depending on regulation).

DATABASE WILL COLLECT OTHER DATA

The database will include information for all of their global transactions and exchanges as well. “Either a full set or a semi-full set of data will depend on the internal requirements at the bank”, Meruant said.  

Swift will be the data provider. The banks are solely responsible for maintaining compliance with their KYC regulations.  Swift will provide a view of the activities of banks focusing on the dealings they had with other countries.

This author applauds Swift and the banks collaborating on this project. As someone who would be an end user of this product, it would prove to regulators that the derivatives market can self-regulate and understand that a bit of transparency can go a long way.

 

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