Man Group has selected Thomson Reuters’ KYC Managed Service to replace predominantly manual in-house customer due diligence processes. The managed service is expected to help the alternative investment manager streamline its Know Your Customer (KYC) process and improve the monitoring of client records on an ongoing basis.
Man Group searched the market for a global KYC solution before selecting the Thomson Reuters Accelus Org ID KYC Managed Service and signing a contract in December 2014. Thomson Reuters has since been building client records for the firm as it moves towards full production. Acknowledging the increasing need for partners to support regulatory compliance, Patrick Kidney, global head of financial crime at Man Group, says: “We needed a proven service provider that could deliver a KYC solution that included client on-boarding as well as ongoing monitoring of client records for change in order to accommodate our evolving compliance needs. The Thomson Reuters solution allows us to deliver on our promise to clients by ensuring our KYC information remains current and accurate.”
Thomson Reuters introduced the KYC Managed Service to the market in March 2014 and has since gone live with three global financial institutes and built a base of over 12,000 client records. Anna Mazzone, head of KYC Managed Services at Thomson Reuters, says more firms are in the process of going live or contracting for the KYC service and suggests its success is in its global scale, which spans 200 countries and 60 languages, and its completeness in terms of providing a full service from data collection, data management and screening to ongoing monitoring. Noting that customer due diligence is a regulatory obligation that offers little or no competitive advantage, Mazzone says: “Using a managed service provides many benefits including standardisation, consistency in the quality of client records, improved customer service and the ability to accelerate client on-boarding.”
While Thomson Reuters’ KYC Managed Service was initially focussed on customer due diligence process required by Anti-Money Laundering regulations, Mazzone says the company will expand the regulatory coverage of the service through 2015 to meet the KYC requirements of regulations including the Foreign Account Tax Compliance Act, Dodd-Frank, European Market Infrastructure Regulation and MiFID. The company has recently extended the service to support correspondent banking and continues to enhance the portal that is used by firms to deposit client documents and share them with counterparties. Looking forward, Mazzone expects early work with corporate companies interested in using the KYC managed service to distribute data to financial services firms to escalate.