eClerx Launches KYC Solution

Business operations services provider eClerx has launched a Know Your Customer (KYC) solution for both the buy and sell side and which can provide support for buy side institutions to be ready for participation in KYC utilities.

The offering includes services such as risk level and anti-money laundering (AML) classification; validation of core customer attributes on a periodic basis; archival evidence of any changes and the performance of negative news checks on companies and its officials; and the ability to cross-reference entities and jurisdictions against politically exposed persons and blacklisted individuals.

The solution supports institutional, private banking/wealth management and retail clients.

“KYC has come into the regulatory forefront and is an essential component of enterprise risk,” says Larry Tabb, CEO and founder, TABB Group. “The myriad global and national regulatory frameworks create significant internal challenges within the banks. There is tangible and costly headline risk and reputation damage for organizations which do not properly manage KYC, especially now that the procedures needed to achieve compliance have been expanded.”

“We are seeing record fines that are reaching into the billions of dollars, and many cease-and-desist orders from the OCC (Office of the Comptroller of the Currency due to lack of proper KYC protocols,” says Mahesh Muthu, associate principal at eClerx. “As increasingly stringent KYC guidelines are being prescribed by regulatory authorities, we leveraged the best practices developed from our years of experience supporting diverse client requirements for major banks to create a solution that will enable our clients to more easily manage these mandates and proactively manage their portfolio of regulatory risk. We have found that more than 10% of the entities we have reviewed have required a risk re-rating, while more than 2% of entities have been dissolved or result in a negative news hit.”