SWIFT broadens its compliance services to the securities community

By Nicole Miskelly | 29 May 2015

SWIFT has announced that it is extending its Know Your Customer (KYC) compliance service to the securities community, as a first step towards addressing the compliance challenges faced by fund distributors and custodians.

The banking co-operative is extending its reach of The KYC Registry, which was established at the end of 2014, beyond correspondent banking and the service will now enable fund distributors and custodians to access the standardised sets of qualified data and documentation needed to achieve KYC obligations.

The KYC Registry was originally developed by SWIFT to help banks address the challenge of conducting counterparty due diligence in a more timely and cost-effective way. Under the new service, similar to banks, fund distributors and custodians will be able to contribute a ‘baseline’ set of date and documentation for validation by SWIFT, which can then be shared by the contributors with their counterparties.

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

The KYC Registry offers a secure portal to exchange both enhanced and simplified due diligence date and documents. The registry includes entities from over 100 countries and facilitates compliance with a number of correspondent relationships worldwide.

Paul Taylor, Director of Compliance Services at SWIFT said the decision to offer The KYC Registry to the securities community is a natural extension of the KYC offering. “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.”

“As we continue to consult on our compliance strategy and roadmap we recognise that financial crime compliance is increasingly becoming a significant challenge of securities customers, and we are looking at broader ways of addressing those challenges,” Talyor said.


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