KYC Registry Showcase

SWIFT’s KYC Registry New York Business Forum

James Wills, SWIFT Americas

Chris Johnson, SWIFT Americas

3 March 2015

In a nutshell… Single source of correspondent banking KYC information

7,000+ banks on SWIFT

Trusted third party (member-owned)

Leverage SWIFT membership

process to collect ‘basic’ data

User-provided, user-controlled

Up-to-date and validated

information (through dedicated

validation teams)

SWIFT Business Forum- New York 2015 2

A Single Standard

Validated data

A feature-rich Platform

Unique value-add content

Community-lead engagement

The founding principles

www.betterkyc.com


http://www.betterkyc.com/

Platform

Comprehensive set of data and documents

• Designed to satisfy the stricter regulatory requirements

• Public, non-public and private information

Continuously validated content

• Fact-based, documented and transparent controls

Collaborative platform

• Banks submit, maintain and selectively exchange data through the platform


• 130 data fields and documents

• 5 categories

Identification

Ownership

Business

Compliance

Tax

• Directly provided by the

source

• Updated yearly and

continuously validated

• Electronic only

• Multi-language support

• A web-based application

• Hosted on swift.com secured

environment

• User-controlled access to data

• Pushed notifications upon

update

• Enhanced reporting, auditing

and exporting capabilities

• A user-to-user communication

channel

• Audit trial

• A unique traffic-based report

to support your KYC

• Objective and factual, helps

validate declared behaviours

• Specific, transparent and

unambiguous

• Optional and shared at bank’s

discretion

• Different levels of granularity

to cater for confidentiality

requirements

Content &

Controls SWIFT Profile

Features & Functionalities


The KYC Registry platform

Feature rich

• User-controlled access

• Portfolio & task Management

• Export, report and audit

• User-to-user communication

Upload, update, manage, share and collect your KYC

data in a single place


The KYC Registry

A standard set of KYC data & documents

Category I – Identification

of the customer

Licenses and Proof of Regulation, Certificate of

Incorporation etc

Category II – Ownership

and management

structure

Declaration of UBO, Board of Directors Lists, AA/MA and

company Shareholdings and

structure, stock exchange

information

Category III – Type of

business and client base

Category IV – Compliance information

Key Compliance contact information,

AML documentation,

AML P& P, Wolfsberg

Questionnaire, USA Patriot Act, Other Compliance Docs

Category V – Tax

Information

Tax ID information, FATCA information, documentation and contact information

SWIFT Business Forum- New York 2015

CDD & EDD

data

FATCA

MIFID

95+ data items

30+ Docs

7

The KYC Registry

Thorough and evidence-based data validation

• Transparency about what is and isn’t validated

• Completeness and accuracy of the information

• Format of document and the translated version Fact-based checks*

• SWIFT publishes the information only if qualification requirements are met

No judgmental or subjective checks

• Data against supporting documents

• Documents against public sources (where possible)

• Validation undertaken by industry professionals who understand the context & are language proficient

Thorough

Validation

1 check/data field and on average 8 checks/document for 98 data fields and 34 documents


The SWIFT Profile

Value added

• An optional service

• A standard SWIFT traffic report

based on FIN traffic aggregated

information

• Understand and monitor indirect

exposure to FATF non-

cooperative or sanctioned

countries

• Bring evidence to substantiate

declared behaviour, enabling

informed business decisions

• Focus risk assessment on what

matters, thanks to consolidated

information

• Bank owned and managed

• Shared through the KYC Registry


The SWIFT Profile – in detail

SCOPE

• Live FIN inter

customer traffic

(Payments: MT103,

MT202, MT202 COV

and Trade Finance

MT400, MT499,

MT700, MT799)

• Payments and Trade

Finance covered in

separate reports

• Coverage of rolling 4

last full quarters

• Computed at the level

of legal entity

ACCESS

• Generated only upon

explicit demand

• Access controlled by

the publisher

• Granular access

management

• Shared through the

KYC platform

• Need to be endorsed

by the publisher

• 4-eyes access

granting and

publication (optional)

DATA

• Three levels of

granularity (Level 1, 2,

3)

• Quarterly refresh

• Refresh upon change

of the sanctioned

countries or FATF

lists

• Archived versions

remain accessible to

subscribers

• Publisher can publish

comments on the

report

ALERTS (2015)

• Optional notifications

upon change in

correspondent’s

Profile (e.g. increase

of exposure)

EXPOSURE

• Exposure towards

FATF’s High Risk and

Non-cooperative

countries and those

subject to EU and

OFAC sanctions

• Only relative volume

and value (no

absolute figures)

• Split between inbound

and outbound, direct

and indirect traffic

• Currency splits

• Intensity expressed in

five percentage

bands: >30% | 30% - 15% |

5% - 15% | 0.01% - 5% | <0.01%

e.g. “Between 5 and

15% of Bank’ As

inbound traffic in USD

is received from

counterparties

located in OFAC

sanctioned

jurisdictions”

e.g. “Algeria accounts for more than

30% of Bank’s A total exposure in

USD”

e.g. “Bank A has been

exposed to Iran through

Bank XYZ in Germany”


The KYC Registry The ordering guide

KYC Registry subscription

This guide describes the

information the person with the

‘swift.com ordering role’ needs to

provide in order to complete the

SWIFT KYC Registry e-order form

Learn more about KYC Registry


http://www.swift.com/products_services/kyc_registry_overview

http://www.swift.com/products_services/kyc_registry_overview

What do you need to provide to complete the order?

2. Your own order reference

and sales partner

3. Your KYC Group Head

name

4. The entities to form your

KYC group

1. The entity you order for

6. The entities for which you

want to order the SWIFT

Profile (optional)

7. The enterprise license

(optional)

5. The two KYC administrators


1. The entity you order for

please select

CPBYBEBB

FBBLCHBB

OCSJDEDD

OCSJDEFF

OCSJFR2A

OCSJFRPA

OCSJFRPB

Select the BIC code of the

entity or institution you are

placing the order for. This is

the entity that will own the

KYC Registry contract.


2. Your own order reference and sales partner

Provide your own internal

purchase order reference or any

other reference used internally to

track this specific order

“S.W.I.F.T. SCRL” by default.

Select another value in case you

ordered from one of SWIFT's

recognized business partners

OCSJFRPB


OCSJGB2L - Long Bridge Bank London - London, GB

OCSJDEFF - Associated Invest Long Bridge Bank - Frankfurt, DE

OCSJFRPB - Long Bridge Bank S.A. - Paris, FR

OCSJFRPA - Long Bridge Bank - Investment Bank - Paris, FR

OCSJFR2A - Long Bridge Bank - Strasbourg, FR

FBBLCHBB - Long Bridge Bank Basel - Basel, CH

TGFFLULL - Long Bridge Bank Luxembourg - Luxembourg, LU

CPBYBEBB - Long Bridge Bank Brussels - BRUXELLES, BE

3. Your “KYC Group Head Name”

This name will be used to create the top

parent entity of your KYC group for your

own users and to identify your group to

your counterparties (in access requests for

instance).

The KYC group is the set of legal entities, belonging

to the same contract, for which you will be

contributing and/or collecting data on the KYC

Registry.

All entities within the KYC group will share accesses

to counterparties' data when access has been

granted.


4. The entities to form your KYC group

OCSJSGSG - Long Bridge Bank Singapore - Singapore, SG



PYTGESMM - Towerbank S.A. - Madrid, ES




OCSJDEDD - Towerbank AG - Duesseldorf, DE







TGFFLULL - Long Bridge Bank Luxembourg - Luxembourg, LU

CPBYBEBB - Long Bridge Bank Brussels - BRUXELLES, BE

Select the legal entities to form

your KYC group for which you

will be contributing and/or

collecting data.

The list of available entities

depends on the entity you order

for as defined in step 1.


5. The two KYC administrators

Note: these persons must already be registered as users on www.swift.com

and cannot already be administrators of another KYC group. If they are not

yet registered users, please ask them to register using this link

[email protected]

[email protected]

Select the two persons in your institution that will be assigned

the KYC administrator user role.

They will be able to add and delete users, assign users to the

appropriate user roles, manage specific application settings,

manage the overall structure of entities in the group, etc.


http://www.swift.com/

https://www2.swift.com/myprofile/public

6. The SWIFT Profile (Optional)







TGFFLULL - Long Bridge Bank Luxembourg - Luxembourg, LU Select the entities for which you want to order the SWIFT

Profile (optional).

The SWIFT Profile uses aggregated SWIFT traffic data to

help banks pinpoint areas of potential risk within specific

jurisdictions and supports due diligence activities


7. The enterprise license (Optional)

Whilst, under certain conditions the KYC

Registry is free in 2015, going forwards the

enterprise license option would allow for a

rationalized fee if your institution owns

multiple KYC groups. The counterparty’s

data set accessed by multiple KYC groups

is only counted once and invoiced at a

100% premium.

Note: this step is optional and you can only select

the enterprise license option when ordering on

behalf of the head of the SWIFT BIC hierarchy


Your KYC group will be

created in the SWIFT

KYC Registry

You will be able to start

uploading data for your

entities and search for

your counterparties’

KYC data


For help, contact your commercial administrator,

[email protected] , or our regional support centre

Support


mailto:[email protected]

Q&A

?


Please provide us with your feedback!

• Kindly complete the survey form and submit upon exiting

24 SWIFT Business Forum New York ~ 3 March 2015


Thank you

Coffee Break

SWIFT Business Forum- New York 2015

Thank you

26

Date post:	14-Jul-2015
Category:	Economy & Finance
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KYC Registry Showcase

Economy & Finance