Bolivia’s SWIFT-connected banking community is now using the Know Your Customer (KYC) Registry. Says Alvaro Alvarez Monasterios, president of Bolivia’s Bank Association Compliance Commission: “SWIFT’s efforts to create the KYC Registry and engage the financial community are instrumental in the global fight against money laundering and financial crime. The Registry’s value in mitigating financial crime risks is unrivalled in this market.”
Fedra Ware, practice lead compliance services Latin America, SWIFT, adds: “With heightened expectations from regulators across the board for improved levels of transparency, banks in Latin America need to demonstrate a steadfast commitment to financial crime compliance. By taking clear action, Bolivia’s financial community sets the tone for a stronger financial system, thereby supporting the region’s inclusion in wider international trade activity.”
The KYC Registry, operated by SWIFT, provides KYC information for correspondent banks as well as fund distributors and custodians. Banks contribute an agreed ‘baseline’ set of data and documents for validation by SWIFT, which contributors can then share with their counterparties. Each bank retains ownership of its own information, as well as control over which other institutions can view it. Banks are not charged for data contribution or for using the Registry to share their KYC information with other users.
Each enrolled institution can also order its SWIFT Traffic Profile as an additional service and share this set of reports with its counterparties at its discretion. The SWIFT Traffic Profile helps banks understand potential risks in their correspondent networks by providing a single, aggregated view of their transaction activity with higher-risk jurisdictions. It helps banks active in such jurisdictions to protect their connection to the global financial system by enabling them to demonstrate their transparency and compliance.
SWIFT says it will expand its KYC compliance portfolio with additional services during the course of 2016.