KYC has become a focus function due to:
Increased regulatory pressure, with regulators requiring ever-tightening control;
Lowered risk appetite, requiring better understanding of counterparties, their taxonomy and corresponding collateral exposure;
Business needs requiring faster turnarounds with lower costs in an environment of tightening margins.
Some of the key challenges that eClerx has seen adversely impact KYC are duplication of effort; over-diligence due to lack of clarity over requirements; violation of rules due to poor training, poor enforcement, or simply indiscretions on part of front office staff; poor internal and external interfacing resulting from inconsistent standards and ineffective tooling of processes.
The eClerx KYC whitepaper offers a framework to tackle the aforementioned issues, based on eClerxâs experience gathered at a number of large Broker-Dealers worldwide.