UBO - Ultimate Beneficial Ownership
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).
Fenergo Client & Counterparty Data Management enables financial institutions to enhance their risk and regulatory management by gaining a full and true understanding of every legal entity with which it engages in business.
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)
The identification of beneficial owners and, in particular, the ultimate beneficial owner (UBO), forms an integral part of the overall Fenergo’s Regulatory Solutions – from Fenergo Anti-Money Laundering (including the 4th EU Money Laundering Directive) and Know Your Customer (KYC) solutions to Fenergo’s Tax Compliance suite (including Fenergo Common Reporting Standard (CRS) and Fenergo Foreign Account Tax Compliance Act (FATCA)).
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.
CLIENTS WHO TRUSTOUR SOFTWARE SOLUTIONS
We chose Fenergo’s solutions because they will enable us to meet the increasing complex regulatory frameworks with an efficient and client-centric onboarding experience.
John Healy Managing Director, Head of Capital Markets Operations SunTrust Robinson Humphrey
Fenergo’s Regulatory Onboarding solution provides us with an additional level of flexibility and enhances our ability to prioritize our compliance initiatives.
Erica Benjamin Managing Director for Client Onboarding BMO Capital Markets
We chose Fenergo to support regulatory onboarding across our Global Banking and Markets division. We wanted a solution that would support an efficient onboarding experience for all of our customers.
Nicola Ray Smith Managing Director, Global Capital Markets Scotiabank
Our main ambition is to streamline the end-to-end client lifecycle management process – from onboarding to regulatory compliance to lifecycle reviews – for all of our jurisdictions and to standardize processes and procedures across different divisions. Fenergo will help us to achieve operational efficiencies and improve our customer experience, whilst maintaining the highest level of regulatory compliance across the globe
Emma Rey Gállego Head of Customer Experience-Onboarding in CIB BBVA
We selected Fenergo’s Client Lifecycle Management software to enable us to manage the CDD / KYC processes from client onboarding to client off-boarding and all the KYC / CDD compliance and lifecycle events (periodic and event-driven reviews) that occur in between. A core part of our business transformation program will involve creating an internal centralized KYC target operating model that will help us to simultaneously improve the client experience and reduce the cost impact of the regulatory KYC activities. Fenergo is the technology platform that will underpin this initiative.