1. SWIFT KYC Registry
SWIFT in Compliance (Frankfurt)
Alex Delaey
17 June 2014
Contacts: kyc.registry@swift.com
2. The Context
An unprecedented challenge to comply with KYC legal requirements
As new laws continue to increase KYC requirements,
current processes show major weaknesses:
• KYC requirements are complex and inconsistent across
jurisdictions
• Information exchange is cumbersome, repetitive and
inefficient
• Required information is not always available or of the
right quality
2SWIFT KYC Registry – 2014 – Confidentiality: Public
3. Efficiency
The Concept
A central platform to collect, store and distribute KYC information
SWIFT KYC Registry – 2014 – Confidentiality: Public
Create more transparency through
guaranteed data quality and value-
added information
EffectivenessStandardisation
3
Reduce complexity through a default
set of data and documents and
enhanced reporting capabilities
Create synergies, provide the
information once and collect information
from a single source
5. SWIFT KYC Registry – 2014 – Confidentiality: Public
SWIFT KYC Registry in a nutshell
Your single source of correspondent banking KYC information
Industry-owned
Well established, neutral
partner renowned for
driving standardised,
industry-wide solutions
SWIFT
KYC
Registry
Global
Reach more than
7,000 banks active in
correspondent banking,
representing more than
1 million relationships
Collaborative & user-
controlled
Banks submit, maintain
and selectively exchange
data through the platform
Unique value-add
SWIFT Profile increases
transparency through
unique, factual traffic
activity report
Complete & up-to-date
SWIFT continuously
verifies and validates the
quality of the data
6. Collection of data and documents
• Structured data
• Supporting documents
• Maintenance
• Archiving and versioning
Controls
• Completeness, validity, accuracy
Reporting and monitoring
• Platform activity reporting and practices
• Audit trail
• Notifications
Value added services
• SWIFT profile
6
Inscope
Outofscope
SWIFT KYC Registry – 2014 – Confidentiality: Public
Name screening
• List screening (PEP, blacklist checking)
• Alert management or bad press
Risk scoring
• SWIFT proposed risk score
• Communication on (non)-accepted
counterparties
Due Diligence
• Around intermediaries
Regulatory watch and market
practices
• Monitoring of legal/regulatory updates
What is the SWIFT KYC Registry?
(and what it’s not)
7. 7
Content
SWIFT KYC Registry – 2014 – Confidentiality: Public
Registry Content & Controls
• Comprehensive set of data
• Directly provided by the source
• Supports multiple languages
• Electronic only
• Fact-based and documented validation
• Yearly revalidation of all information
• Data quality ratings visible to all
• No judgemental or opinion-making controls
Controls
8. 8SWIFT KYC Registry – 2014 – Confidentiality: Public
Registry Features & Functionalities
Consumption
• Search and view counterparty summary
• Request access to your counterparty’s data
• Access your counterparty’s data
• Watchlists and notifications upon update
• Add and maintain your own KYC data
• Grant and manage access to your data
• Receive reporting and audit logs
• Manage KYC users for your organisation
Contribution
&admin
9. 9SWIFT KYC Registry – 2014 – Confidentiality: Public
SWIFT Profile – The Concept
A standard traffic-based report to support your KYC
• Objective and factual, based on FIN traffic
• Helps validate declared behaviour
• Substantiates risk rating process
• Different levels of granularity
• Optional and shared at bank’s discretion
• Specific, transparent and unambiguous
• Does not include competitive information
• Compliant with SWIFT data retrieval policy
SWIFTProfile
10. 10
January ’14
• Formal announcement of the
KYC Registry initiative
• Start of KYC Working Group
• Begin data collection with
Working Group
September ’14
• Open the Registry for data
contribution by a number of
selected banks
December ’14
• Open the Registry for data
contribution and consultation
by all banks
• Commercial launch of the
Registry
SWIFT KYC Registry – 2014 – Confidentiality: Public
Timeline
The journey starts today
Bootstrap General
availability
Controlled
ramp-up
11. 11SWIFT KYC Registry – 2014 – Confidentiality: Public
Next steps: Start planning now!
• Inform those responsible for your customer due
diligence about the SWIFT KYC Registry initiative
• Identify and determine who will be responsible for
maintaining your institution’s data on the KYC
Registry
• Review and potentially adapt your KYC
procedures to start using the KYC Registry