Fenergo Client & Counterparty Data Management provides a true representation of client relationships, complex hierarchies and ultimate beneficial ownership across a wide range of regulations (AML, KYC, CRS, FATCA).
Under AML / CTF laws, financial institutions are tasked with identifying the real ownership of all assets. “Identifying the beneficial owner, and taking reasonable measures to verify the identity of the beneficial owner, such that the financial institution is satisfied that it knows who the beneficial owner is. For legal persons and arrangements this should include financial institutions understanding the ownership and control structure of the customer.” FATF (Financial Action Task Force)
Tax compliance regulations, in particular, such as FATCA, introduces a requirement for a 10% or more threshold for beneficial ownership (if the person displays U.S. indicia), which is significantly higher than the 25% norm, which most AML/KYC reviews currently demand (for low risk entities). This means that FATCA requires a level of Customer Due Diligence (CDD) that goes beyond that with which AML compliance professionals are currently familiar.
Fenergo Client & Counterparty Data Management enables financial institutions to assess and gain a full appreciation of the overall corporate structure and ownership model that underpins each entity, as well as a full view of all interlinked companies, directors, shareholders, guarantors and beneficiaries. Fenergo’s solution enables financial institutions to proactively track and manage all of this information efficiently and effectively.
The solution integrates seamlessly with Fenergo’s Regulatory Onboarding and Client Lifecycle Management solutions, enabling the financial institution to conduct CDD / KYC on the entity itself, its directors, shareholders and beneficial owners in one integrated process, making the identification of beneficial owners, and particularly the ultimate beneficial owner, even easier.
Gain agility and maximize operational efficiency by centralizing onboarding and client lifecycle management across multiple jurisdictions and lines of business.
Improve Time to Revenue
Expedite client onboarding and ensure best-practice compliance with our rich regulatory rules engine and sophisticated workflow capabilities.
Enhance Client Experience
Provide a more consistent, digital experience across all customer-facing channels powered by a seamless, 360-degree view of each client.
Solve Regulatory Obligations
Ensure compliance with a wide range of global and regional AML, KYC and Tax regulations across the entire length of the client lifecycle.
Beneficial Ownership in Focus, FinCEN vs EU Money Laundering Directive
Heightened anxiety of a number of recent high-profile terrorist activities, has resulted in a significant shift towards increasing corporate transparency and weeding out shell companies in an attempt to bolster the defences against money laundering and terrorism financing.
Examining Beneficial Ownership Register Adoption in APAC
The Financial Action Task Force (FATF) regards access to accurate information regarding beneficial ownership as critical to the effective deterrence of criminal activities that could be obscured by corporate structures.
Financial institutions should look to standardise management of beneficial ownership through a rule-based technology solution that contains a global directory of beneficial ownership thresholds (which may vary across various jurisdictions and regulatory frameworks).
The Path to Client Lifecycle Transformation is Paved with RegTech
While regulatory compliance will remain at the forefront of banking operations, RegTech has enabled financial institutions to manage this and lead the charge towards a better, more efficient and client-centric way of doing business.