Interbank messaging provider, SWIFT, has launched its new registry for banks aiming to increase efficiency and reduce risk related to their correspondent banking Know Your Customer (KYC) compliance activities.
More than 20 global and regional banks have joined the KYC Registry according to SWIFT, which claims that this demonstrates momentum and support for its financial crime compliance initiative.
“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,” SWIFT’s CEO, Gottfried Leibbrandt, said in statement.
The KYC Registry claims to provide a simple, secure way to exchange a standardised set of information for correspondent banking due diligence.
How it works
Banks participating in the registry contribute an agreed baseline set of data and documentation for validation by SWIFT, which the contributors can then share with their counterparties.
Each bank retains ownership of its own information, as well as control over which other institutions can view it.
Banks are not charged for contributing data or sharing their KYC information. Data consumption will be free in 2015 for banks contributing information and promoting it to their correspondents.
The official launch of the KYC Registry on 11 December follows a period of a few weeks during which it has been gradually ramped up with a selected number of banks (Newsflow, 30 October 2014).
For more information about The KYC Registry go to www.betterkyc.com
Categories: Trade Based Financial crimes News