Jersey Considers Digital Due Diligence Platforms
by Jason Gorringe, Lowtax.net, London
19 March, 2015
At a recent Jersey Finance event, a panel of experts discussed the potential benefits and risks of modernizing how financial services firms comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements.
The panel considered whether digital solutions have the potential to increase operational efficiencies and improve client satisfaction. Such systems would enable the on-boarding process to be expedited and would simplify processes for clients with regards to the disclosure of the information required for KYC checks.
The event also discussed the implications for the regulator of a greater reliance on technology, and there were pitches from various providers of KYC and AML services.
Geoff Cook, Jersey Finance CEO, said: "As financial service providers face increasing international competition and devote greater resources to an ever evolving regulatory and transparency agenda, digital KYC solutions have the potential to revolutionize the client on-boarding process and provide a more robust framework for data management and regulatory reporting. For that reason, Jersey's finance industry is working closely with the government and the regulator on the island's FinTech proposition, particularly where there are clear opportunities to forge ahead of competition such as positioning the jurisdiction as a cutting edge KYC center of excellence."
Andrew Le Brun, Jersey Financial Services Commission, said: "There are clearly regulatory and reputational issues involved in moving further towards digital identification and due diligence platforms, but, if applied effectively, the benefits may be considerable too. Done in the right way, there is a real opportunity for Jersey's internationally focused finance industry to better manage risk on the one hand and to transform existing processes to become more efficient and cost effective on the other, enabling delivery of a higher quality service on the global stage."
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