CounterpartyLink has upgraded its CPL Compliance entity data solution with the addition of ultimate beneficial ownership information, more detail on Legal Entity Identifiers (LEIs) and the inclusion of Global Intermediary Identification Numbers (GIINs). The upgraded solution is designed to provide all the counterparty data required for compliance with Know Your Customer (KYC) regulations and is available immediately.
While previous versions of CPL Compliance have included ultimate parent names and it is possible to purchase parent company information including ultimate beneficial ownership from CounterpartyLink, the upgraded solution includes ultimate beneficial ownership information showing people or organisations that control more than 10% of an entity.
James Redfern, managing director at CounterpartyLink, says: “The boundaries of KYC are being pushed and firms need to understand the ultimate beneficial owners of the customers they are dealing with.” Redfern acknowledges that the addition of ultimate beneficial ownership data to CPL Compliance will add a small cost to each entity record, but suggests this will be offset by no longer having to purchase parent company records to discover the data.
While the ultimate beneficial ownership data supports KYC compliance, Redfern suggests it may also be needed if rules proposed by the US Financial Crimes Enforcement Network requiring banks to identify beneficial owners of legal entity customers become regulatory requirements.
Other enhancements to CPL Compliance include two additional LEI data fields, one covering the status of an LEI in terms of whether or not it is current, the other showing an LEI’s annual renewal date. LEI data is sourced directly from Local Operating Units that issue LEIs and is updated on a daily basis.
GIIN data that is required for compliance with the US Foreign Account Tax Compliance Act is another addition to the solution. This data is sourced directly from the US Internal Revenue Service and is updated every month or added whenever a new company record is built. Further, the regulatory and exchange listing status of the parent of an entity has been added to each entity record with a view to simplifying risk categorisation.
Redfern expects existing CPL Compliance users to upgrade to the enhanced solution, but also hopes it will attract new customers.