Sophie Alexander KYC Initiatives for an Interconnected World
Jinfo Blog

Thursday, 7th August 2014 Sign in to MyJinfo or create an account be able to star items Printable version Subscribe via RSS to get updates as soon as Blog items are added

By Sophie Alexander

Abstract

The sheer volume of regulatory change in the area of compliance can be overwhelming for many firms. With more intensive scrutiny from regulators worldwide and record fines imposed last year, it's more important than ever for companies to ensure they have a robust risk management framework in place. Sophie Alexander's article highlights the findings of three recent surveys carried out by Dow Jones, KPMG and Thomson Reuters, which give an insight into the challenges faced by companies in the area of compliance.

Item

FreePint Topic Series: What You Need to Know Your Customer (KYC)Companies are getting used to working in an ever-changing regulatory environment and the results of three surveys highlight some of the common themes faced by companies working in compliance as well as the impact these changes are having on their business processes.

We analysed KYC survey findings from Dow Jones, KPMG and Thomson Reuters.

Global Regulations are Impacting All Jurisdictions

Global regulations appear to be having a huge impact on companies' anti-corruption policies. For example the US's FATCA and the UK's Bribery Act have an effect beyond the country borders, as reported in the Dow Jones Anti-Corruption Survey Results 2014 (PDF).

Whilst most companies appear to be confident in their due diligence processes, the findings showed that time and cost remain the key factors hindering progress for some, read more in the Thomson Reuters Cost of Compliance Survey 2014 (PDF - registration required).

Outsourcing & Off-Shoring are Growing Trends

Outsourcing and off-shoring is a growing trend and more companies now outsource at least some of their AML functions.

In the aftermath of political instability in certain regions, it was found that financial institutions are more focused than ever on the need to exercise even more scrutiny over Politically Exposed Person (PEP) transactions.

Know Your Customer is the Second Largest AML investment

The KPMG Global Anti-Money Laundering (AML) Survey 2014 (PDF) found that Know Your Customer was the second largest AML investment made by companies and given that 70% of companies have received a regulatory visit which focuses on KYC, this is unsurprising.

However, this is still a challenging area because of the complex ownership structures in place.

Adopting a more Proactive Approach

What is clear from looking at the results of all three surveys is that companies, financial institutions in particular, need to adopt a more proactive approach to avoid being subject to fines and sanctions. This means keeping an eye on regulatory trends in order to anticipate future areas of regulatory scrutiny.

Editor's Note

FreePint Subscribers can log in to read and share more key highlights from the surveys as well as ideas for next steps in KYC Survey Findings from Dow Jones, KPMG and Thomson Reuters.

This article is part of the FreePint Topic Series: What You Need to Know Your Customer (KYC) running from July-September 2014 which includes articles, reviews and expert tips. Register your interest now, and you'll also get a free PDF report with selected premium articles when it's published in September.

« Blog

What's new at Jinfo?

Focus on Value Chain

Document the value chain, and transform the way you think about, manage and report on your product portfolio and your information service contributions to your organisation goals.

Focus on Value Chain


Focus on Risk Assessment

Risk assessment is a required process for a healthy information department. It gauges the ability of your services, team, portfolio and overall value to withstand stress.

Focus on Risk Assessment

Sorry, there seems to be a problem with Webinar and Community listings. Please let us know, by email to support@jinfo.com. Thank you.

Benefit from our research

Our proven processes, resources and guidance will help your team make the shift from transaction centre to strategic asset.


Workshops

Designed around the most common challenges and pain points for time- and resource-strapped information teams

Supercharge remote productivity and value
Holistic content portfolio management
Future-proof your information service
Executive-ready communications


Briefings

A tailored overview of our research and active discussion with your Jinfo analyst.


Assessments

Measure your starting point to articulate your strengths and set priorities for future improvements. Assessments gauge risk, capacity, value and more.


Read case studies, and start the conversation:

Consulting benefits

Connect your team with the practical tools, original research and expertise to build and support information strategy in your organisation.

A Jinfo Subscription gives access to all Content (articles, reports, webinars) and Community.

Subscription benefits