Swift announced The KYC Registry, the firm's know-your-customer (KYC) service, will be made available to fund distributors and custodians.
The KYC Registry, originally launched in December 2014 for correspondent banks, allows clients to contribute a baseline set of data and documentation for validation by Swift, which can then be shared with the clients' counterparties.
Paul Taylor, director of compliance services at Swift, tells Buy-Side Technology the decision to expand on The KYC Registry reach was primarily due to customer demand. However, Swift had always planned to eventually expand the service, and funds and custody services are two areas where the firm already has a good market share, according to Taylor.
"Fund distributors and custodians need The KYC Registry for the same reasons as correspondent banks. With increased use of financial sanctions globally, and regulatory pressure to maintain strong sanctions compliance capabilities, the spotlight has fallen more on the securities industry," Taylor says. "As a result, fund distributors and custodians need to conduct the similar due diligence required for KYC compliance, which The KYC Registry can help address."
Swift is headquartered in Brussels.
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