Swift has made an addition to its know-your-customer (KYC) service with the launch of the Swift Profile.
According to a statement by the worldwide financial messaging service provider, the Swift Profile gives banks a unique report providing an overview of the correspondent banking activities of a potential counterparty bank or financial institution (FI).
Available from January, the new service is designed to help address KYC challenges for banks and FIs. It supports due diligence processes, aggregating Swift traffic data to help pinpoint potential areas of risk within a jurisdiction, and increases the transparency of correspondent banking activity.
From January, banks will be able to request a Swift Profile, which may then be shared at their discretion, however banks retain control over which institutions can view their information.
“The Swift Profile will enable banks to better assess their counterparties’ own declared behaviour and gain insights into potential risks posed by the activities of their counterparties and those institutions’ customers,” says head of banking markets and compliance services at Swift, Luc Meurant.
Commenting on the initiative, managing director, client due diligence (CDD) and middle office at Standard Chartered Bank, David Fleet, says: “The Swift Profile can help banks to focus their due diligence efforts and improve the effectiveness and efficiency of their KYC assessments.”