Corporate treasurers and bankers providing products for corporates are expressing concerns over the changing approach of banks as they seek to balance know your customer (KYC) demands with the needs of businesses.

According to co-head of product management GTS EMEA, at Bank of America Merrill Lynch (BAML), Mathew Davies, the cost of meeting KYC due diligence requirements can be up to US$50,000 for a single client.

Market exits
This is forcing some banks to withdraw from less-profitable markets if the business is not covering the cost he said in an interview with Euromoney.

Davies is seeing increasing numbers of corporate-issued requests for proposal requiring banks to show a dedication to a particular market.

Bank reaction
Banks are attempting to react to the requirements of their individual clients, but creating a wholly custom-built service is not always feasible due to the expense involved according to Davies.

“There needs to be a balance between creating something that is bespoke, and giving clients a degree of flexibility,” he added.

A full account of Davies’ views can be found here.

Categories: Trade Based Financial crimes News