21 March 2018
Jon May

Connected KYC

Jon May - kyc.com

6Posts 25,440Views 0Comments

KYC utilities offer a refreshing approach for APAC

02 May 2016  |  5824 views  |  0

I recently had the privilege of participating in roundtables hosted by Deutsche Bank and HSBC in Singapore and Hong Kong. Other local banks and corporates also attended to discuss some of the challenges and regional issues they face around KYC.

One of the interesting topics debated – KYC isn’t a top priority in Asia. Or is it? Depends on who you ask. Regulators such as the HKMA and MAS have placed a significant focus on managing KYC and money laundering risks.  Corporates on the other hand see it more as a necessary prerequisite to doing business across all of their banking relationships. Different banks have different requirements, making it tough to keep up with ‘who needs what, when’. In addition, the entire onboarding process is often measured in weeks not days and becomes a paper chase nightmare reducing speed to market to be ready to invest.   

Banks in turn are looking to mitigate costs, streamline operational efficiency and reduce the time associated with KYC, AML and regulatory mandates. One local financial institution attending the event said that up to 80% of its onboarding resources are dedicated to servicing existing customers. This resource allocation is compounded by the fact that many jurisdictions within Asia require original documentation or a certified true copy.

In addition, customer information needs to be refreshed between one to three years depending on risk profile. A recent survey revealed that 58% of APAC firms refresh data based on customer risk. The other 42% will refresh annually or as and when it is needed. Regardless of the refresh cycle, the top priority for all firms combined is to obtain missing KYC information for higher risk customers. This highlights the importance of conducting refreshes but also recognises the disparity in timeframes for capturing the data.

Adoption of an industry standard for Asia is needed, to drive a greater demand for compliance, innovation and efficiency. There is an easier way, by moving to a shared utility to mutualise efforts, reuse information and be ready to transact. The bottom line – utilities shouldn’t replace engagement or the client relationship. Instead it should simplify the processes so banks can be more customer centric and corporates and investment managers can focus on the transactions that are essential to their businesses. 

TagsRisk & regulation

Comments: (0)

Comment on this story (membership required)

Latest posts from Jon

KYC utilities: no longer sitting on the sidelines

23 June 2016  |  3952 views  |  0 comments | recomends Recommends 0 TagsRisk & regulation

KYC utilities offer a refreshing approach for APAC

02 May 2016  |  5824 views  |  0 comments | recomends Recommends 0 TagsRisk & regulation

Delivering a return on KYC: more than meets the bottom line

08 December 2015  |  3596 views  |  0 comments | recomends Recommends 3 TagsRisk & regulation

KYC: Getting the green light to transact

30 September 2015  |  3673 views  |  0 comments | recomends Recommends 0 TagsRisk & regulationSibos

Simplifying KYC in short order

14 September 2015  |  3040 views  |  0 comments | recomends Recommends 0 TagsRisk & regulationSibos

Jon's profile

job title CEO
location London
member since 2015
Summary profile See full profile »
Jon joined IHS Markit in January 2015 to head up kyc.com and IHS Markit's regulatory and compliance managed services.

Jon's expertise

Member since 2015
6 posts0 comments
What Jon reads
Jon writes about
Risk & regulationSibos
Jon's blog archive
2016 (2)2015 (4)

Who's commenting on Jon's posts