Financial institutions have responded positively to interbank messaging provider, SWIFT’s official launch of its Know Your Customer (KYC) Registry, (Newsflow, 12 December 2014).

The registry is designed for banks aiming to increase efficiency and reduce risk related to their correspondent banking KYC compliance activities.

Industry reaction
“The KYC Registry from SWIFT will make it much easier for us to on-board new counterparties,” according to head of operational risk, compliance and AML at Iccrea Banca, Francesco Rescigno.

“It will enable us to receive and share KYC information simply and securely, eliminating costly and redundant document exchanges,” he reckons.

Emerging markets
If the registry meets expectations, it may also help reduce the cost of compliance which has been seen as an increasing problem by development bankers amongst others (Newsflow, 30 October 2014).

Head of trade finance at Asian Development Bank, Steven Beck, says he hopes the registry will help. “We welcome the KYC Registry as a way for banks in these [emerging] markets to demonstrate transparency and manage their counterparties’ information requests accurately and efficiently.”

Categories: Trade Based Financial crimes News