A new registry designed to improve ‘know your client’ (KYC) compliance and reduce costs is being launched by a group of at least six banks and Swift, the bank-owned communications platform for the payments industry.
A memorandum of understanding was signed earlier this month for the development and use of a centralised utility for the collection and distribution of standard information required by banks as part of their due diligence process.
The signatories to the MoU include Bank of America Merrill Lynch, Citi, Commerzbank, JPMorgan, Société Générale and Standard Chartered. SWIFT will operate the KYC Registry as an industry-wide utility focusing initially on correspondent banking relationships. The signatory banks will input their own KYC data into the utility with more banks expected to join in coming months and to contribute their own data, Swift said in its press statement.
The registry will offer members a standardised access point to obtain details on their counterparties, while retaining ownership of their own information and control over which institutions can view it, Swift said.
Luc Meurant, head of banking markets and compliance services at Swift, said: “The commitment from these banks demonstrates the importance of collaboration in financial crime compliance. Every Swift user will be able to benefit from our community-based solutions.”
The Registry is expected to go live at the end of 2014 with a controlled ramp-up planned during the summer of 2014. A new compliance analytics service is also expected soon while compliance solutions such as sanctions screening and sanctions testing are already available via Swift.
Swift's press release is available by clicking here.