SWIFT launches KYC registry 11 December 2014Brussels Reporter: Stephanie Palmer
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SWIFT has launched its Know Your Customer (KYC) registry for correspondent banks, aiming to increase efficiency and reduce risks.
More than 20 global and regional banks have joined the registry, supporting a community-driven financial compliance initiative for crime prevention.
The KYC registry is designed to be a simple and secure way to exchange a standardised set of data and documentation to share with other counterparties. Banks retain ownership of their data, and control over which other institutions can view it.
SWIFT CEO Gottfried Leibbrandt, said: “Regulatory compliance imposes an enormous cost burden on banks and they are actively looking for common platforms to help mutualise that cost and reduce risk.”
He added: “The KYC Registry is our next flagship in financial crime compliance, delivering on our commitment to provide community-wide solutions for the industry.”
KYC is operated by SWIFT as a neutral provider of the information provided. Banks are not charged for providing data or for using the registry to share their information. As of 2015, contributing banks will not be charged for accessing data either.
Francesco Rescigno, head of operational risk, compliance and anti money laundering at ICCREA Banca, said: “The KYC Registry from SWIFT will make it much easier for us to on-board new counterparties.”
“It will enable us to receive and share KYC information simply and securely, eliminating costly and redundant document exchanges.”
Steven Beck, head of trade finance at Asian Development Bank, added: “Correspondent banking relationships are critical to trade and economic development in emerging markets.”
“We welcome The KYC Registry as a way for banks in these markets to demonstrate transparency and manage their counterparties’ information requests accurately and efficiently.”
SWIFT is also introducing SWIFT Profile, a report that should increase KYC transparency and addresses requirements for Know Your Customer’s Customer (KYCC), which is the first in a series of due diligence services in the pipeline.
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