Client onboarding and Legal Entity Data Solutions from Thomson Reuters

Transcription

1 Client onboarding and Legal Entity Data Solutions from offers a broad and integrated suite of KYC, client onboarding and legal entity data solutions to support your ongoing client lifecycle management and reporting obligations. No one can help you Know Your Customer like

2 CLIENT ONBOARDING FROM THOMSON REUTERS INTRODUCTION Introduction Despite significant investment by banks, average onboarding times are continuing to rise, from 28 days in 2016 to 32 days in 2017, with a further 24% rise expected in the next 12 months Global KYC Survey 2017 as a In the decade since the financial crisis, regulatory scrutiny of financial institutions (FI) knowledge of their customers has significantly increased. Stringent requirements for onboarding clients and continuing due diligence obligations have increased the pressure on FIs, forcing them to focus on building a comprehensive, single view of their clients. The purpose: to understand the risk associated with doing business with them and to keep on top of reporting requirements. has developed a set of services and platforms that support you in tackling the challenges posed by this increased regulatory environment. We deliver to FIs consistent, accurate information and a comprehensive workflow platform. These bring increased efficiency and cost savings to their operational processes. We also enable FIs counterparties to streamline the sharing of their KYC and regulatory compliance documents through a secure online platform. CLASS Our combined award-winning assets of 350,000 built KYC records, 1.25 million actively managed legal entity profiles and database of 7 million legal entities ensure firmly sets the standard in client due diligence solutions. 2

3 Contents 4 Industry challenges 6 How can support your KYC, client onboarding and legal entity data requirements? as a 8 as a How we are investing in services to ensure customers meet regulatory requirements and receive best in class solutions 20 Why? 21 Award-winning solutions CLASS 22 Contact us 3

4 Industry challenges More than ever before, regulations such as the European Union (EU) 4 th Anti-Money Laundering Directive (AML), the Markets in Financial Instruments Directive (MiFID II), and the US Foreign Account Tax Compliance Act (FATCA) are forcing FIs to focus on building a comprehensive, single view of their clients to verify identity and map relationship networks. as a The challenges facing financial institutions require them to not only collect more data and documents for their clients but also to ensure that the information they hold is accurate and up to date. CLASS Consequently, managing onboarding and regulatory reporting processes have become increasingly time-consuming and complicated. They are also becoming more expensive due to increased staffing requirements and larger technology infrastructure, with additional impacts to FIs frontline due to the cost of delayed transactions. The results of 2017 Global KYC Survey clearly demonstrate the increasing scale and scope of due diligence tasks facing FIs. Regulatory change is driving longer and more complex KYC processes. 60 percent of C-level executives are dedicating more time and attention to KYC and client due diligence year-by-year. Businesses are spending even more on technology systems for client onboarding and regulatory compliance. Yet there is a lack of common international KYC standards and processes which is further complicating the tasks at hand, exacerbating the challenges and costs that KYC involves. 4

5 Five key challenges facing FIs are: as a Controlling headcount FIs and their counterparties have had to increase staffing to understand, implement and deliver due diligence processes and information that ensures they are compliant with increasingly stringent regulatory demands. Streamlining operational processes Increasing regulatory requirements, especially around client due diligence and reporting, mean that FIs and their counterparties struggle to control and drive down time and costs associated with their processes. Collection and verification of client documentation and legal entity data is increasingly burdensome and time-consuming. In addition, due to inconsistent processes and siloed internal structures, data collection and onboarding related activities are often duplicated across different functions within a firm. Accessing and maintaining accurate information Requirements for a more complete picture of clients and the increasingly global nature of business mean that sourcing good quality data across jurisdictions poses many challenges for FIs. Identifying primary data sources across regions, then accessing information can be time-consuming. Ensuring accuracy of information is further exacerbated by the requirement to ensure that data is continuously monitored and updated. Issues of inaccurate and outdated internal records lead to increased time and costs associated with internal reconciliation, checking, validating and maintaining client legal entity data. Complex and diverse regulatory requirements Multiple, ever-changing and tighter regulatory requirements, especially those involving jurisdictional variations, mean that FIs are often under pressure to understand the changing detail of what information they need to collect in order to be compliant across each market and asset class. Managing internal controls and data security There is significant pressure on FIs to monitor their internal controls and processes across their organization and to provide evidence of robust internal audits to regulators and boards. Assessing the extent to which control guidelines are being adhered to or implemented can be difficult to monitor, especially in large, complex organizations. As a result, firms are challenged with ensuring that concerns such as data security and privacy with respect to the collection and storage of client information are managed and the overall governance of their operational processes is sound. CLASS 5

6 How can support your KYC, client onboarding and legal entity data requirements? empowers the world s leading banks and investment managers to make informed decisions, with our trusted content at its core. We offer a flexible suite of integrated solutions, which have been further strengthened by our acquisitions of Clarient and Avox. Together, these improve the quality of critical data, drive operational efficiencies, enhance regulatory compliance and improve the overall client experience. as a CLASS We provide a connected suite of services to support FIs and their clients in meeting challenges of increased regulation and reporting obligations. Our five integrated solutions are: as a 6

7 and Legal Entity Data Solutions from as a Identify Collect and Verify Assess Screen SERVICES as a SOFTWARE SERVICES as a SOFTWARE Monitor Monitor and Refresh and Legal Entity Data Solutions A broad and integrated suite of KYC, client onboarding and legal entity data solutions to support your ongoing client lifecycle management and reporting obligations. Investigate Further Due Diligence SERVICES SOFTWARE Client On-boarding SERVICES SOFTWARE Client On-boarding CLASS 7

8 as a Verified Entity Data as a CLASS as a sources and maintains legal entity data, removing the burden of ongoing monitoring from our clients. supports clients by: Providing access to experienced people-led research, solely dedicated to legal entity data quality Accessing and maintaining accurate legal entity data for all entities of interest, whether clients, prospects, issuers or another role in the transaction cycle Streamlining operational processes connected with entity data management and distribution Meeting the requirements of complex, diverse and changing regulations 8

9 as a Our industry-leading legal entity database of over 2.4 million entities covers multiple jurisdictions and entity types. The Managed Data (MDS) provides a common baseline for clients reference data and risk decision-making, using 58 standardized data fields to maintain legal names, company and regulatory status, addresses, industry sector classifications and corporate hierarchies as well as linking to a range of common identifiers such as Legal Entity Identifier (LEI) and company registration numbers. Our Enhanced Data (EDS) provides additional data fields to help FIs to comply with a range of regulations including Dodd-Frank, EMIR, FATCA and FCA transaction reporting. Our experienced research team gathers trusted content from authoritative international sources of legal entity data such as national & state government sources, regulatory filings, stock exchange listing documents and accredited business registries. More than 320 qualified analysts work in our Wrexham, UK operations Centre of Excellence, collectively speaking 27 languages, with planned expansion into three other global entity data centres of excellence. Inbound requests and data delivery via APIs, a secure web portal, extract files and delivery of data via select partners. as a Pricing model as a is charged annually on a legal entity volume basis and access to the data is provided on an enterprise-wide usage model to enable clients to maximize benefits of the content across their firm. Future enhancements Over the coming months are working with clients to prioritize and deliver further value to our service through enhancing the scope of regulatory requirements we support our customers with. CLASS Fees are typically separated into: Access to core MDS of common legal entity reference data, charged on a per entity per year basis (this is based on a build fee and the annual refresh of the entity record) Key focus areas for the next six months include: LEI profiling and maintenance service this is a client-specific report that will assist FIs in identifying and resolving gaps within their LEI universe in readiness for MiFID II compliance Optional EDS modules which provide regulation specific identifiers and classifications (eg. FATCA, Dodd-Frank, EMIR) which are also charged on a per entity per year basis AnaCredit module this additional EDS module will provide reference data fields required in AnaCredit European Central Bank reporting to support requirements due to be implemented in September 2018 Applicable professional services fees for ad hoc development and implementation support Funds Data module our existing data service will be enhanced by data points and relationships in funds structures 9

10 They delivered the entire population of records in a high-quality and timely manner and have been extremely responsive to our needs. We continue to derive real value from our use of service. Robert Goldstein, Chief Operating Officer, BlackRock Our builds upon our as a by delivering identity data that is verified to a global KYC policy standard, including, ultimate beneficial owner unwrapping, collection of privately held information and ongoing screening of all related parties. It also provides a collaborative platform to enable FIs and their clients to exchange due diligence information. as a CLASS supports clients by: Providing comprehensive KYC records to a global policy standard leveraging trusted legal entity information from authoritative sources in over 200 countries and 60 languages Accelerating client onboarding times and improving client experience by streamlining KYC operational processes, client outreach and document management Offering a flexible solution that delivers an end-to-end identity verification, entity unwrapping and screening service; including full KYC using private documentation and public KYC data only Providing integrated ongoing screening and monitoring to detect changes in your customers KYC profiles, ensuring data remains accurate and up to date Maintaining a robust risk and controls framework that has attained a Type II ISAE 3000 standards and adherence to other regulator outsourcing guidelines 10

11 offers an end-to-end client identity, verification, screening and monitoring service for accelerated client onboarding, remediation and refresh, built on a collaborative platform that streamlines the distribution of due diligence documentation. Our service leverages quality information (including end-client contributed information via the platform), proven specialist operational capabilities and a leading technology platform. Underpinned by a comprehensive risk-based KYC policy, our service covers 41 jurisdictions and has been stress tested with regulators and over 100 FIs globally. The document exchange functionality streamlines and simplifies the management and distribution of client due diligence documentation from a single, secure interface at no cost. This simple-to-use platform enables market participants to proactively manage their documentation to meet a broad scope of regulatory demands and control who sees their information. as a is delivered either via web-based portal or API. Pricing model Our document exchange functionality is offered as a complementary service. Our KYC managed service is priced on a volume basis. This is based on: KYC record build Annual record maintenance Scope of service (including screening, private documentation) Risk/due diligence level of client Minimum committed volume of clients There are implementation and professional services fees for consultancy and set up. Future enhancements is focused on enhancing the user experience of the platform and building additional modules, covering the onboarding value chain in order to further streamline the onboarding process for FIs and their counterparties. Key focus areas for the next six months include: Continuation of automated data collection to deliver further efficiencies in the record build process and further enhance data quality Expanding coverage of regulatory modules working to increase the scope of our service, including FATCA/CRS and MiFID II client classification to further deliver the operational efficiency and client experience benefits to our customers and their clients CLASS Enhanced messaging capability to facilitate the interaction of FIs and their counterparties through the platform. This will deliver improved user experience in the document exchange platform capability and also provide audit and association with KYC records 11

12 I don t think that there is another player that can do this as well as. Dave Schmied, Executive Director of Due Diligence Operations within CAO, JP Morgan as a reports are a crucial feature in today s fast paced, global business environment and should form part of a business compliance program. We offer corporates and financial institutions integrity and advanced background checks on any entity or individual, anywhere in the world. Our specialist team gathers intelligence from the public domain including watchlist screening, adverse media, litigation databases, and other sources of reputable information. Our reports are trusted by organizations across the globe to enhance and simplify their due diligence processes and protect against reputation and financial damage. CLASS supports clients by: Delivering trusted information gathered by a team of 300+ qualified analysts, speaking 60+ languages that cover all regulatory jurisdictions. Our reports are powered by World-Check risk intelligence data and Reuters News Offering turnaround times that are clear, predictable, consistent and fast, streamlining your due diligence process without sacrificing quality Providing accurate information in a well structured and transparent report format, identifying key issues in a clear and concise way along with a comprehensive range of specialized reports that support specific compliance requirements 12

13 Adding to your compliance program can help support your organization in creating operational efficiencies, streamlining internal processes through direct access to accurate data, and enabling compliance with regulatory requirements where further due diligence is required. Reports can be delivered via a web-based portal, API and . as a Pricing model is priced on a per report basis. Fee is based on: Region Report complexity (including turnaround timeframes) Future enhancements For our solution, we have been focused on delivering an enhanced customer experience through improving report ordering and access capabilities and strengthening our client liaison function to more effectively deliver report customization. add ons (including screening additional related entities and further background checks) Our service can be charged on a single report or rolling credit basis. Key focus areas for the next six months include: Improved technology capabilities we are enhancing our report ordering platform and development of API connectivity to make data receiving and processing even more secure for customers Content enhancement continuous improvement in the coverage of information achieved through innovative search techniques. Advanced development and training of inhouse experts ensures continuously exemplary data quality Customer experience expanded global Customer Liaison function to ensure closer partnership with our FI customers and greater ability to customize the research and delivery methods to meet exact customer requirements CLASS 13

14 as a To further reduce the administrative burden of resolving screening results, we offer, which conducts due diligence screening on an organization s behalf and highlights positive and possible matches for all heightened risk individuals and entities. CLASS Our utilizes leading World-Check risk intelligence and a proven methodology for name matching to carry out initial screening, remediation and ongoing monitoring on behalf of our clients who lack the time and resources to screen and remediate against their customers and third parties. supports clients by: Lowering overall costs of screening customers and suppliers Creating operational efficiencies and streamlining internal processes Offering a trusted model with strong quality assurance processes in place Providing auditable proof of due diligence under regulations such as Anti-money Laundering and Countering the Financing of Terrorism 14

15 Our Screening reports are delivered via secure link portal and client acceptance and escalations are managed through a web-based platform. as a Pricing model Our pricing is volume based, charged on an annual basis or project basis. Fees are based on: Match resolution preferences Screening preference Ongoing monitoring Future enhancements Our is working to enhance translation and adverse media capabilities to deliver further risk insights to our customers. World-Check Profile tagging we are working to categorize risks at a more granular level Enhanced translation capabilities expanding coverage of LATAM Spanish, Russian and Chinese capabilities CLASS 15

16 as a Our platform offers an end-to-end client lifecycle management solution, leveraging best in class data, technology and partner community. Our platform delivers a combination of the necessary components of an entity data model, workflow, business rules, data management and documentation management to support FIs with compliant, automated onboarding of new clients and facilitates continuing refresh cycles. Importantly, client onboarding works seamlessly with the FI s incumbent systems with multiple access points for all of those who need to collaborate on the onboarding process. CLASS supports clients by: Leveraging a proven implementation methodology and extensive track record of successful onboarding implementations at 20+ large global FIs Providing client lifecycle specific functionality and client data models that have been successfully delivered Offering domain expertise and emerging best practice to enable client onboarding processes that meet global regulatory guidelines Providing an active compliance engine that monitors the customer base for compliance with regulatory and internal requirements Streamlining internal processes and driving operational efficiencies through intuitive workflow and rigorous automation 16

17 CLIENT ONBOARDING FROM THOMSON REUTERS INTRODUCTION is specifically designed to streamline client lifecycle management processes, combining functionality with best practice KYC policy definitions and client data models. With over a decade of experience providing robust tools for centralizing client data, defining rules, processes and forms, we offer a solution customized to the customer s specific needs, covering multiple jurisdictions, business units and the ever-changing regulations. as a We have deep expertise of the KYC process requirements to deliver a solution faster and more cost effectively than in-house functions. Our platform facilitates compliance with the complex and specific needs of KYC client onboarding, while ensuring maximum flexibility for the common areas of business change in the onboarding and client lifecycle process. Pricing model Our platform is priced as: A software license available on an annual or perpetual basis. Based on: -- Platform configuration -- Volume of users -- Additional modules (incl. FATCA, Credit, Legal) and/or regions -- Annual software maintenance One off implementation and professional services fees for platform configuration, and set up and integration are required Future enhancements We have been working closely with our clients to enhance the flexibility of our platform delivery model and further expand access to market leading data. Key focus areas for the next six months include: Enhanced user experience launching a new user interface built to deliver a more intuitive user experience and workflow Increase access to best in class data assets integration of as a into the platform as well as further leveraging scale and complementary datasets and partnerships to deliver trusted information across the onboarding value chain via a single platform to our clients Dynamic API developing a dynamic API that will provide flexibility and easy integration into clients and partners systems CLASS Flexible delivery model leveraging our fully managed hosted option to offer the client onboarding platform with pre-configured global policies. This will enable our customers to better adapt to changing regulation and respond to increasing requirements across MiFID II, EMIR as well as KYC 17

18 How we are investing in services to ensure customers meet regulatory requirements and receive best in class solutions Combining the services and vision of Clarient and will provide an enhanced and more effective client experience, supporting critical processes throughout the onboarding process in times of continuous global regulatory change. We will continue to partner with to drive further efficiencies for the industry and are excited for the benefits this will provide. as a CLASS Colin Hall, Group Chief Data Officer, Credit Suisse 18

19 Acquisitions and brand retirement In March 2017 acquired Clarient and Avox. As a result we have conducted a full integration to combine all of our best in class assets, which include services, data, platforms and operational processes. This enables us to deliver a market-leading suite of KYC managed services, legal entity data and document exchange solutions, which will expedite our customer due diligence interactions and make it easier for them to conduct business and comply with regulation. As part of this integration, certain brands and products have been retired in order to streamline the services we offer and enhance the value we bring to our customers while retaining their flexibility. Avox Managed Data and Enhanced Data Avox Managed Data and Enhanced Data becomes Verified Entity Data as a. However, the Managed Data and Enhanced Data distinctions remain. The Clarient Entity Hub The Clarient Entity Hub platform has been retired whilst functionality has been integrated with the Org ID portal. This creates a new single interface and an enhanced platform that improves the experience for all users, consumers and providers alike, while maintaining security, controls and permissions of the information distributed. This enhanced platform is branded. Org ID becomes and forms the base for our KYC managed service as a CLASS Clarient Base, PKYC, Full KYC product names have been retired. However, these services offerings have been integrated into and remain accessible via the platform. 19

20 Why? Comprehensive and flexible solutions is the leading provider of KYC and legal entity data due diligence standards. We deliver a full range of integrated solutions to: Increase data quality to inform business decisions Improve client onboarding times and experience Provide FIs with the ability to meet regulatory reporting requirements Our modular and flexible approach enables you to tailor solutions to fit a range of regulatory requirements and onboarding processes, ranging from data and software to managed services. Expert knowledge and experience offers industry leading global research structure. Our research team have specialist subject matter expertise across client due diligence and legal entity data collection. Collectively they speak 60 languages. Strategic KYC vision We have made a board-level, long-term commitment to help FIs solve client due diligence challenges. We have demonstrated this by acquiring Clarient and Avox and through our Thomson Reuters 2020 vision of developing a platform for connecting counterparties to share information. Market leading depth and breadth of content Our award-winning managed services leverage our marketleading risk intelligence database, World-Check, as well as Reuters Newsroom, the largest international news agency, that has been operating for over 160 years. Following our acquisitions of Avox and Clarient, our combined assets of 350,000 built KYC records, 1.25 million actively managed legal entity profiles and database of 7 million legal entities are unparalleled in market. Global brand and reputation has a reputation for integrity, diligence and information security that is second to none. We are the trusted data provider to regulators and the regulated community around the world. as a CLASS 20

21 Award-winning solutions FStech Awards 2017 Best Risk Management Software Operational Risk 2017 Best Outsourcing Provider TMT News Technology 2016 Best Global Financial Technology Firm Data Management Review Awards 2016 Best Entity Data Solution Data Management Review Awards 2015 Best KYC and Client Onboarding Solution FTF News Technology Innovation & Excellence Awards 2015 Best Operational Risk Management Solution and Best AML/Anti-Fraud Solution Top Innovators in Corporate Finance 2015 Process Innovation Award with Vodafone in Global Finance Awards as a CLASS 21

22 Contact us Find out more about our client onboarding and legal entity data solutions. risk.tr.com as a CLASS 22