28 May 2015

SWIFT opens The KYC Registry to funds distributors and custodians

SWIFT’s KYC Registry will now address compliance challenges for funds distribution and custody services as a first step in broadening compliance services to its securities community.

Brussels, 28 May 2015 – SWIFT announces that The KYC Registry is now available to fund distributors and custodians. In response to an identified need within its Community, SWIFT is extending the reach of The KYC Registry beyond correspondent banking to support Know Your Customer (KYC) compliance requirements for funds distribution and custody services.  

The KYC Registry offers correspondent banks and now fund distributors and custodians a unique approach to KYC compliance by providing access to a standardised set of qualified data and documentation needed to fulfil KYC obligations. Similar to banks, fund distributors and custodians will now be able to contribute an agreed ‘baseline' set of data and documentation for validation by SWIFT, which the contributors can then share with their counterparties. All Registry users retain full ownership of their KYC information, along with control over who can access the data via the secure online platform.

"Fund distributors and custodians face similar challenges to banks with KYC due diligence,” says Mark Gem, Head of Compliance at Clearstream and Chair of the SWIFT Securities Compliance Working Group. "I am pleased that SWIFT is extending the reach of The KYC Registry, building upon its momentum in correspondent banking."

Launched in December 2014, The KYC Registry provides a simple, secure way for financial institutions to exchange a standardised set of information required for KYC compliance, increasing efficiency and reducing risk. The KYC Registry was developed by SWIFT in collaboration with the industry to help financial institutions address the challenge of conducting counterparty due-diligence in a more timely and cost-effective way than current KYC processes.

“We are pleased to extend The KYC Registry to fund distributors and custodians, a move which is a natural extension of the KYC offering we have successfully put in place for correspondent banking, ” says Paul Taylor, Director of Compliance Services at SWIFT. “As we continue to consult on our compliance strategy and roadmap we recognise that financial crime compliance is increasingly becoming a significant challenge for securities customers, and we are looking at broader ways of addressing those challenges, for example in the area of screening services.”

The KYC Registry includes entities from more than 110 countries, facilitating compliance with a growing number of correspondent relationships worldwide.

For more information about The KYC Registry, visit KYC on swift.com.

 

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 and Sanctions Testing services, Compliance Analytics and The KYC Registry. For more information, visit the Compliance Services on swift.com.

About SWIFT
SWIFT is a member-owned cooperative that provides the communications platform, products and services to connect more than 10,800 banking organisations, securities institutions and corporate customers in more than 200 countries and territories. SWIFT enables its users to exchange automated, standardised financial information securely and reliably, thereby lowering costs, reducing operational risk and eliminating operational inefficiencies. SWIFT also brings the financial community together to work collaboratively to shape market practice, define standards and debate issues of mutual interest.

For more information, visit www.swift.com or follow us on Twitter: @swiftcommunity and LinkedIn: SWIFT

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