Nordic Regional Conference

The KYC Registry

Alex Delaey

March 2015

Objectives

• Introduce the KYC Registry concepts

• Give an experience of the tool through a demo

• Share practical information

• Collect your feedback

Today’s market: An unprecedented challenge to

comply with KYC requirements

• Pressure to reconcile & ‘de-risk’

• Exploding AML/KYC fines

• KYC complexity (FATF/FATCA) and

inconsistencies across jurisdictions

• Cumbersome, repetitive and inefficient bilateral

exchanges

• Unavailability and poor quality of information

As a result the industry has witnessed a new development, the growth of the KYC ‘utility’

The Cost of KYC is becoming prohibitive

The KYC Registry: Your single source of KYC data

• Single Standard for KYC requirements

• Trusted 3rd party to validate & store

data with built-in access and entitlements

• Unique content: SWIFT Profile, EDD

data

• 7,000+ banks on SWIFT 1.3M+

connections

KYC

Utility

The KYC Registry - A clear global standard

• A clear and transparent standard of KYC data and documents as agreed & endorsed by the

industry working group:

Identification of the customer

Ownership and Management structure Ultimate beneficiary

Type of business and client base Revenue source/ Customers

Compliance Information Enhanced AML overview

Tax information FATCA

• A data set that meets Customer & Enhanced Due Diligence (EDD) requirements

• Core AML & Corporate Governance documents included as standard;

Wolfsberg/AML Questionnaire, USA PATRIOT Act Certs, Bank licenses, Certificates of Incorporation, MA/AA,

Annual Reports, Statutes & Charters, AML Controls, Group Structure and Ownership, Director & shareholder

Identity documents

• Constantly re-evaluated and evolved to meet the most exacting requirements

Validation - Rely on thoroughly validated information

• Transparency about what is & isn’t validated

• Fact-based checks on completeness, validity, accuracy, language and format

• Coherence checks between documents

• No judgmental or subjective checks (e.g. veracity of AML-related questions)

SWIFT publishes the information only if qualification requirements are met

The KYC Registry platform: rich in features to save time

and cost in managing your KYC data…

• Portfolio Management to help you track your own

institution’s data and those of your counterparties

• Task Management to help you track content

access requests, update requests

• Sharing settings so you control who can and

cannot access your data

• Group upload options to auto-populate multiple

entities with identical docs

• Access through web portal so no IT integration or

customisation required.

• Intuitive and easy to use to avoid lengthy training

regimes.

Know Your Customer’s Customers: SWIFT Profile

9

PURPOSE

Bring transparency on whether your correspondent has

established relationships in sanctioned or FATF high risk

jurisdictions

APPROACH • Optional: ordered and shared at the discretion of the

publishing bank

• Refreshed on a quarterly basis

• Available for Payments and Trade Finance

• Does not contain competitive information (absolute

values or volumes)

KEY BENEFITS • Provides unique insights into your correspondent’s

activity, based on data otherwise inaccessible to you

• Substantiates the declared behaviour by relying on data

provided by a neutral third party

• Promotes a pro-active approach in the assessment of

existing relationships and fosters continuous monitoring

of exposure

So... How does it look like?

The KYC Registry: promoting collaboration and

driving community engagement..

7,000+ banks representing > 1.3 million relationships already connected to SWIFT

SWIFT is trusted with the security and transit of the world’s GDP in messages

SWIFT is a member-owned not-for-profit cooperative with clear industry oversight

The Working Group of 12 of the world’s largest banks have committed to the Registry

12

The KYC Registry after 3 months

40+

70+

160+

In a nutshell…

• We offer a standardised set of data for KYC documentation, formed with 12 of the largest

global banks, for the banks.

• We validate and verify declared documentation before publishing it

• The KYC Registry addresses CDD as well as the hard to acquire EDD data elements

• We are not an outsourced utility, we are hosting and providing secure access to data.

• We offer the SWIFT Profile, allowing you to get greater transparency on your wider

Correspondent Network and address the non-obvious risk of ‘KYCC’

• We are a community-owned not-for-profit organisation with ethical product pricing

Join the KYC Registry

• Share your KYC data at no cost

• Pay only for the data you need

• Benefit from the 2015 launch offering

• Getting activated on the Registry is 5-clicks away

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KYC Registry ambition for 2015

• Foster community adoption by collecting a critical mass of data

in the first year of commercial availability

• Collaborate with community leaders to initiate change, lead by

example and encourage their counterparties to join the Registry

• Bring immediate value by on-boarding higher risk and WG high

priority jurisdictions through community deals

Questions

Thank you!