SWIFT’s Registry saves time, increases consistency, and makes cumbersome processes easier
“Over the past few years in particular, ‘Know Your Customer’ (KYC) requirements have evolved and the amount of time we have been spending on due diligence has escalated,” says Mark Brotherton Director, Fraud & Financial Crime, Lloyds Bank in case study about The KYC Registry from SWIFT.
Lloyds Bank has been sending out “far more” anti-money laundering (AML)/KYC questionnaires than before, and the number received continues to increase from a wider population of correspondent banks. As a consequence, increasing numbers of institutions are now refusing to fully complete other institutions’ questionnaires, requiring gap analysis to be conducted using existing sources.
Brotherton continues, “While we are very comfortable with our KYC standards, we see the SWIFT KYC Registry as a solution to this and we are taking the opportunity to streamline an end-to-end process that is in danger of becoming cumbersome.”
The KYC Registry is a centralised repository that maintains a standardised set of information about correspondent banks, funds distributors and custodians required for due diligence processes.
“We have previously taken the pro-active step of writing to our correspondents to highlight our support for SWIFT’s KYC Registry,” says Brotherton. “The opportunity is for all banks to work together to achieve consistency in their fight against financial crime. “It helps make a cumbersome process much easier, and there is the comfort of knowing that this is SWIFT-managed.”
The opportunity is for all banks to work together to achieve consistency in their fight against financial crime. Irrespective of their size, banks will attract value from The KYC Registry.