KYC Exchange Net AG, a Swiss-based tech firm, have developed the KYC Exchange Net platform, which is due to launch in January 2014. The new service is designed to help firms meet the anti-money laundering (AML) and KYC rules by providing a platform that allows for the cost-effective exchange of KYC data between regulated financial institutions (FIs), such as banks, and their clients.

KYC Exchange Net claims to have successfully tested its new service with a group of European banks. There are also tests in progress with Asian banks, which are due to complete before the year end, in time for the launch in the new year.

Platform and processes
The KYC Exchange Software-as-a-Service (SaaS) platform provides a secure KYC/CDD web-based communication platform that eliminates the need for terminals or individual software and enables more efficient user access management, state the partners. Platform users can gain significant efficiency and cost savings due to faster collection and distribution of KYC data, consistent data structure and automated updates and, therefore, have access to up-to-date KYC records at all times. KYC Exchange Net AG will offer a range of different services to suit all customer requirements and budgets it adds.

Together with IHAG Holding and its partner companies AdNovum Informatik AG and Evalueserve AG, KYC Exchange Net AG has formed a partnership to facilitate compliance with these regulations. The partnership brings substantial scale, claim the partners all of whom have successful FI processing track records, and the platform will be global in nature.

Potential customers are being invited to fill out a KYC Standard Questionnaire with Protiviti, a consultancy which has been hired by KYC Exchange Net to develop a best-practice governance model based upon the responses. This will be shared and updated in an attempt to provide a comprehensive full-service platform, and a banking advisory panel will be consulted to suggest best practice guidelines for end users as the service develops in 2014.

Growing competition
The new service is competing with rival services, e.g.SWIFT’s KYC platform announced at Sibos 2013 as a collaboration initiative. There is also the IdenTrust KYC Exchange service (established in 2012) that is available for both banks and corporates.

---

KYC programmes have always been essential and yet a nightmare for banks and their clients to operate. In 2014, for the first time, there will be a small number of platforms to choose from. For corporates the issue, as always, with such services is: is the focus, the emphasis on making KYC easier for corporates as well as for banks rather for banks?