Global

Details

  • Service: Advisory, Risk Consulting, Tax
  • Industry: Financial Services, Insurance, Investment Management, Capital Markets, Banking
  • Type: Survey report
  • Date: 1/29/2014

Know Your Customer continues to be the focus of regulators 

Know Your Customer
Regulatory visits continue to focus on ‘Know Your Customer’ (KYC), which has directly affected investment decisions as respondents ranked KYC the second largest Anti-Money Laundering (AML) investment. However, despite the increased regulatory attention and investment, key obstacles remain.

Seventy percent of respondents stated that they had received a regulatory visit which focused on KYC, suggesting KYC is still under the spotlight. Regulatory investigations have frequently drawn attention to significant gaps in the KYC information maintained by financial institutions.


Sixty-eight percent of respondents stated that full identification is obtained for intermediate owners and entities. Regulators expect financial institutions to identify their clients’ ownership structures and the rationale behind them. In the current environment of increasing regulation and risk it is important to obtain information on who owns and controls your clients’ structures. Unpeeling the layers of ownership can be complex and time-consuming, but it is necessary to identify the ultimate beneficial owner, so we anticipate an increase in this practice over the next three years.


 

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