Swift extends KYC compliance services to securities users
Swift is extending its Know Your Customer compliance service into the securities area, making it available to fund distributors and custodians.
Launched at the end of last year, The KYC Registry was developed to offer correspondent banks access to a standardised set of qualified data and documentation needed to fulfil KYC obligations. As with banks, fund distributors and custodians will now be able to contribute an agreed ‘baseline’ set of data and documentation for validation by Swift, which they can then share with their counterparties. All 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,” said 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.”
Paul Taylor, director of compliance services at Swift, described the move as a “natural extension” of the service. “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,” he said.