| LONDON, March 19
LONDON, March 19 Thomson Reuters Corp
said it has launched a central register of information
to help banks meet increasing compliance demands on who they
deal with and cut their costs by reducing duplication.
The news and information company said on Wednesday the
product would act as a central clearing house for banks,
corporations, asset managers, hedge funds and others to check
identity documentation for their counterparties.
Senior bankers have for some time said there is potential
for banks to share information on customers to help to meet
increasing "know your customer" (KYC) requirements and save
money by reducing duplication of information.
Regulators require banks to have rigid KYC policies and to
tighten compliance to bolster protection against money
laundering and fraud, and to meet requirements ranging from
sanctions on individuals to industry reforms such as Dodd-Frank.
Many banks now have hundreds of KYC compliance staff.
Thomson Reuters said it would also be more efficient for a
company to submit data once, rather than for every bank it
Thomson Reuters said it had developed its product, Accelus
Org ID, in partnership with major banks and other financial
firms and following discussions with nine regulators.
As banks have looked to cut the time, effort and cost of
gathering information on clients, several providers have said
they are looking at offering centralised KYC services.
Swift, a Brussels-based group used by thousands of banks to
exchange financial messages, this month said six banks had
agreed to develop and use a new KYC Registry that would collect
and share information about the other banks they use for their
Thomson Reuters, which gets about half of its revenue from
banks and other financial institutions and about one-quarter
from the legal profession, said Thomson Reuters Transaction
Services Ltd, which provides electronic FX brokerage services,
is using the Accelus Org ID and its 7,000 bank and buy-side
clients were live on the product.
Tradeweb Markets, an affiliate of Thomson Reuters and a
provider of fixed income and derivatives marketplaces, is in
talks about using it, Thomson Reuters said.
Banks have said client confidentiality and security have
been stumbling blocks to sharing of information in the past.
Thomson Reuters said its product was fully secure, and it was up
to the client to allow which bank can see its data.
Thomson Reuters is the parent company of Reuters.