Know Your Customer (KYC) requests from banks are placing additional strain on corporate treasurers at a time when they face greater responsibilities on liquidity, cash forecasting, risk management and operational efficiency.
Corporates caught in the middle of this risk and regulatory dilemma not only have to conduct due diligence on their own third parties but provide information that allows their banks to fulfill their regulatory obligations.
Due to the lack of a ‘common standard’ between the banks, corporate treasurers are faced with frequent and inconsistent KYC document requests from different banks and even within the same bank.
Now is the time to push back. Thomson Reuters wants to hear what corporate treasurers have to say through our KYC survey.
In a recent article posted by the Association for Financial Professionals, treasurers were encouraged to voice their concerns to their banks about the information being requested.
If corporate treasurers lobby the banks they will have to go back to the regulators and voice these concerns, opening up a line of communication between all parties. The need for a streamlined approach is crucial for the KYC process, as Damian Geldinning, Treasurer of Lenovo, stated at the Sibos conference last year: “We actually need to start saying to the banks, ‘We’re going to provide this once to a central depository, you can go get it from them.’”
Efforts are being made to streamline the maintenance of KYC records, with Thomson Reuters KYC as a Service delivering a managed service to meet the needs and demands of corporate customers in conjunction with banks.
The KYC as a Service solution supports the development of a common standard that should reduce the administrative burden on treasurers.
But as regulators continue to introduce new rules, the process looks set to get more complex. Our survey will help address the scale of the problem and give corporate treasurers a channel to voice their concerns.