SWIFT's Know Your Customer (KYC) Registry —a centralised utility for the collection and distribution of standard information required by banks as part of their due diligence — is expected to go live this year.
The new utility, which is based on a collaborative industry-wide approach, aims to help banks "reduce KYC-related costs and mitigate compliance-related risks, enabling them to manage better their financial crime compliance processes," said Luc Meurant, head of Banking Markets and Compliance Services, SWIFT.
Banks will have access to a central repository of up-to-date institutional information collected by SWIFT from participating banks. SWIFT hosts and manages the utility, verifying the completeness, validity and accuracy of the data provided, while member banks will retain ownership of and responsibility for their own information.
Even though KYC Registry's initial focus will be on correspondent banking requirements, SWIFT may subsequently extend the service.
The KYC Registry is part of SWIFT's financial crime compliance solutions. The portfolio includes Sanctions Screening and Sanctions Testing tools, and will soon be complemented by a new business intelligence for compliance service.