21 July 2018

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Retired Member

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Do you KYC well!

23 July 2014  |  2084 views  |  0

Not sure if the KYC being done by banks is mature enough to perform its true function using standard credit check agencies which have stood the test of time. Financial regulations have come out strongly in the wake of many incidents of security lapses and money laundering.

Most Banking systems rely on SWIFT for information about banks using the BIC and IBAN anyway. Recently SWIFT have deleloped the KYC Registry on similar lines

Would it not be prudent to let automated banking systems filter customers with KYC check using a safe, secure and trusted entities such as SWIFT quite like OFAC has been used for filtering payments. Cost for the connectivity could still be an issue but for majority of the banks involved with payment processing using predominantly SWIFT interfaces in some form or the other to make payments, the cost could outweigh the benefits.

Six additional major banks join SWIFT’s KYC Registry initiative - See more at: http://www.swift.com/about_swift/shownews?param_dcr=news.data/en/swift_com/2014/PR_KYC_announcement.xml#sthash.egOJS2db.dpuf

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