Thomson Reuters has launched a service to help banks comply with know your customer (KYC) requirements. Developed in partnership with financial institutions, corporations, asset managers and hedge funds and following discussions with nine regulators, Accelus Org ID is designed to provide a complete managed service covering the on-boarding of clients, risk categorisation and risk screening.
Accelus Org ID acts as a neutral ‘central clearing house’ by creating accurate identity documentation. It provides the ability to screen for high money laundering risk characteristics, negative news flow or sanctions issues. Clients submit a single set of identity documents to Accelus Org ID and can make them available to all of their authorised financial institutions.
According to risk technology research firm Chartis, the impact of KYC due diligence requirements is being widely felt across the financial industry. “Recent regulations have made the requirements around client information more time-consuming and onerous, with increased burden specifically placed on fund managers, hedge funds and corporate clients for identity documentation,” said Peyman Mestchian, managing partner at Chartis. “There is a lot of talk in the industry around the need for managed KYC services and given the onus being placed on the end client, their participation in any service is critical.”
A working group of financial services professionals have participating in the development of Accelus Org ID, helping to define the requirements for the management and distribution of identity data and documents. Thomson Reuters Transaction Services Ltd, which provides electronic FX brokerage services, participated in a beta trial and is now live on Accelus Org ID.
“As a globally regulated trading business, it is vital that we have absolute faith that we are meeting our KYC regulatory requirements using a secure service,” said Phil Weisberg, global head, Foreign Exchange, Thomson Reuters. “Accelus Org ID is supporting us with all aspects of KYC needed for our 7,000 member entities and this will ease the path for our clients to trade and invest with confidence.”
Accelus Org ID is centrally updated as new regulations come into effect. It covers rules and regulations surrounding anti-money laundering (AML), the Foreign Account Tax Compliance Act (FATCA), Dodd-Frank, the European Market Infrastructure Regulation (EMIR) and the Markets in Financial Instruments Directive (MIFID), supporting KYC compliance in the US, Europe, Asia and the emerging markets. The service integrates with financial institutions’ existing internal systems is available globally in 63 languages.
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