KYC Exchange Net AG

Setting the Standard as the first secure communication platform for Know Your Customer (KYC) and Customer Due Diligence (CDD) purposes for the Financial Industry.


LATEST NEWS

08.06.2015

Improvements to client database management and other system upgrades successfully implemented on Monday, June 8, 2015

01.06.2015 Press Release

Unique product offering attracts 6 more banks to KYC Exchange Net AG. [more]


Background

“All firms who are subject to the Money Laundering Regulations 2007 must put in place systems and controls to prevent and detect money laundering. Money laundering is the process by which the proceeds of crime are converted into assets which appear to have a legitimate origin. Many authorised firms also have an additional regulatory obligation to put in place and maintain policies and procedures to mitigate their money laundering risk.” Financial Conduct Authority (FCA), 22.07.2013

The rules, guidelines and recommendations that are recognised as the international standard for combating of money laundering and the financing of terrorism (further information: http://www.fatf-gafi.org/) are neither globally consistent nor prescriptive. This results in an almost complete lack of standardisation, and financial institutions have to find their individual approach to ‘best KYC/AML practice’.

Consequently, most banks use internally designed KYC questionnaires when they initiate the KYC process, and exchange the questionnaire by traditional email in pdf format. This highly manual process results in high fixed costs, which affect the bank which requires KYC information from its clients, but also the clients who have to provide their information to a multitude of banking partners (see Graphic 1).

KYC Exchange Net AG’s secure communication platform KEN addresses this lack of standardisation. Developed in close cooperation with the industry and following a best-practice approach, KEN hosts a comprehensive and regulatory compliant KYC Standard Questionnaire that can be filled online. It also allows the client to upload all supporting documents so that the client can manage all KYC related documents in one secure place and submit them electronically to members of KEN (see Graphic 2) and other parties. Banks can access their client’s documents online and download KYC data in electronic format. KEN manages all KYC relationships between banks and their clients and ensures that the latest set of client documents is always accessible. Furthermore, KEN supports the pro-active monitoring Trigger Review Events and provides comprehensive audit trails to both parties.

traditional process Graphic 1: Traditional KYC Process
ken Process Graphic 2: Improved KYC Process through KEN

Concept

KYC Exchange Net AG’s communication platform KEN has been developed by highly experienced industry professionals with significant knowledge of FI Relationship Management, Transaction Banking and KYC Compliance. Their sole objective is to rationalise and standardise those elements of the KYC process which are common to all banks, thus enabling banks to save cost, to improve efficiency and to allow the financial industry to maintain and monitor a globally connected network of correspondent banks and relationships.

KEN is designed as a front-office system that enables Relationship Management or Client-on-boarding Teams to obtain KYC data directly from their clients. There is no outsourcing, no need to rely on third party vendors and no interference with internal policies and procedures. KEN facilitates the exchange of up-to-date and tailor-made KYC information - fast and efficiently, with audit trails, and in an electronic-process-friendly format. The system is dynamically built and able to adapt to changes in best-practice, and KYC Exchange Net AG works closely with the Financial Industry and the regulators to ensure that the quality and depth of the framework that is provided by KYC Exchange Net AG will at all times meet regulatory requirements.


BENEFITS

For the Requesting Bank

  • KYC Exchange Net AG facilitates the direct and confidential KYC-communication with any other client bank
  • Suitable for client on-boarding and recurring KYC reviews
  • Unlimited coverage of client banks and geographies
  • KYC data comes directly from the client bank and is confirmed as being current
  • No interference with internal KYC policies and procedures
  • KYC data arrives in electronic format and can be uploaded into the requesting bank’s systems
  • Automatic Updates and access to latest set of the client bank's KYC documents online
  • Supports Trigger Review Event monitoring
  • Clean audit trails and KYC Relationship History for each client bank
  • Generates significant time and cost savings for front-, middle- and back-office

For the Client Bank

  • Free and secure private data repository allows the bank to store all KYC documents online at KYC Exchange Net AG
  • Ownership of KYC data and documents remains with the bank
  • The bank controls which relationship bank receives KYC documents
  • One extensive and diligent KYC Standard Questionnaire covers the requirements of all participating banks
  • Suitable for the management of all KYC Relationships – the counterparty does not need to be a member of KEN
  • Highly efficient KYC Document update functionality with automatic update of all KEN Relationship Banks
  • Clean audit trails and KYC Relationship History for each counterparty who ever received KYC Documents via KEN
  • Generates significant time and cost savings when responding to KYC Document requests

Access

KEN is a web-based communication platform, avoiding the need for terminals or special software. The interface is compatible with Internet Explorer version 8 or higher, Firefox, Chrome, and Safari. The visual interface is optimised for tablet computers such as Apple’s iPad.

The password protected connection between the user and the system is encrypted with SSL. The communication protocol is HTTPS.

KEN’s user interface and document-management-system has been designed by AdNovum AG, a leader in the Swiss IT sector. All KYC Documents and audit trails are stored in Switzerland.