Solutions

Reducing cost and risk in correspondent banking

Regulatory fragmentation and stringent AML and KYC/KYCC requirements are increasing the cost and risk of managing correspondent banking relationships. The result is a 22% decline in active correspondents since 2011, particularly in markets where transaction volumes aren’t high enough to offset the cost of compliance.

Reducing the risk of correspondent banking, by improving local transparency and compliance

Maintaining AML, KYC and KYCC compliance across different jurisdictions is an increasing information burden, complicated by legacy technology and manual processes
  • Lower FCC maturity of some respondents
  • Limited KYC and KYCC visibility
  • Increasing AML and CTF reporting responsibilities
  • High information burden due to regulatory fragmentation
  • Rising fines for non-compliance
  • High operational cost of financial crime compliance

Introducing Overlay+
Reversing the correspondent banking decline

Bridge the gap between the growing demand from regulators to see more information about financial transactions and the inability of legacy technology to securely exchange critical information

How it works

Overlay existing technology systems to create a single, transparent and auditable view of information. Ensure complete and accurate AML/CTF reporting internally, and create a standardised network for financial crime information sharing with respondent bank partners.

Features

  • Auditable correspondent and respondent bank dashboards
  • Digital KYC and KYCC checklist per country and respondent
  • Overlay approach to collect data from internal systems
  • Provable history of documents and contents
  • Secure information collection from respondents or clients
  • Connect correspondents and respondents in secure network
  • Partner-led managed service to shift compliance burden onto respondent banks, within correspondent risk tolerance

Benefits

  • Standardise respondent bank KYC and KYCC processes
  • Safe and regulated correspondent banking environment
  • Facilitate expansion into new markets and re-open old channels
  • Uplift FCC controls at respondent banks
  • Auditable and secure portal to view KYC and KYCC activity
  • Reduce information burden on correspondent 'hub' banks
  • Increase financial inclusion and reduce financial crime

Identitii won the Sibos 2020 Discover Pitch Perfect Competition for helping reverse the correspondent banking decline. Read the winning pitch on our blog or watch the video below.

To discuss how Identitii can help you open correspondent banking corridors, fill in the form below.

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