Eight central banks across the region embrace a collaborative approach to financial crime compliance
This press release is also available in Spanish
New York, 3 November 2016 - At the 50th Felaban Annual Assembly, SWIFT announced that eight central banks in Latin America have adopted SWIFT’s Financial Crime Compliance solutions to enhance transparency and combat financial crime.
The central banks of Belize, Bolivia, Costa Rica, Curacao, Dominican Republic, Ecuador, Haiti and Paraguay, have implemented SWIFT’s financial crime compliance solutions, including SWIFT’s KYC Registry and Sanctions Screening. In addition to adopting the KYC Registry themselves, some of the central banks have also endorsed the adoption of the KYC Registry across their entire jurisdictions. As a result of this regional effort, the number of institutions adopting SWIFT’s financial crime compliance tools in the region has nearly doubled in less than 12 months.
The trend of de-risking – the decision taken by banks to partially or fully exit certain jurisdictions, product domains and currencies by exiting their foreign correspondent banking relationships – has been pervasive in recent years. Latin America has been one of the most affected regions. In an effort to mitigate de-risking, or being disconnected by their foreign counterparties, the financial community across Latin America has taken these important steps to enhance transparency and build greater trust with the international financial community.
“De-risking in some regions has become so extreme that banks are now being challenged to address the problem, and the focus has moved from a commercial issue to one of financial inclusion,” says Fedra Ware, Lead Compliance Services Latin America, SWIFT. “Implementing the right compliance controls within an organisation, as well as ensuring enhanced transparency and collaboration between private and public entities, is critical to avoid being on the receiving end of a de-risking decision.”
De-risking in some regions has become so extreme that banks are now being challenged to address the problem, and the focus has moved from a commercial issue to one of financial inclusion.
Giorgio Trettenero, Secretary General, FELABAN adds, “Correspondent banking relationships play a crucial role in the economic development of Latin American countries. Thus, the region must continue to take the right measures to enhance transparency and build greater trust amongst all stakeholders including governments, correspondent banks, as well as national and international regulators. It is critically important that public and private institutions collaborate, implementing the most efficient and effective compliance programs across the region.”
It is critically important that public and private institutions collaborate, implementing the most efficient and effective compliance programs across the region.
SWIFT is a global member-owned cooperative and the world’s leading provider of secure financial messaging services. We provide our community with a platform for messaging, standards for communicating and we offer products and services to facilitate access and integration; identification, analysis and financial crime compliance. Our messaging platform, products and services connect more than 11,000 banking and securities organisations, market infrastructures and corporate customers in more than 200 countries and territories, enabling them to communicate securely and exchange standardised financial messages in a reliable way. As their trusted provider, we facilitate global and local financial flows, support trade and commerce all around the world; we relentlessly pursue operational excellence and continually seek ways to lower costs, reduce risks and eliminate operational inefficiencies. Headquartered in Belgium, SWIFT’s international governance and oversight reinforces the neutral, global character of its cooperative structure. SWIFT’s global office network ensures an active presence in all the major financial centres.
About SWIFT’s financial crime compliance services portfolio
SWIFT’s Compliance Services unit manages a growing portfolio of financial crime compliance services in the areas of sanctions, Know Your Customer (KYC) and Anti-Money Laundering (AML). The portfolio includes Sanctions Screening, Sanctions Testing and Name Screening solutions, Compliance Analytics and Payments Data Quality services, and The KYC Registry. For more information, visit www.swift.com/complianceservices.