Carl Needham, Clarient PKYC Product Executive Director
Regulators and policy makers continue to focus on greater transparency across the global financial markets in an effort to lower risk, prevent money laundering and enhance market stability.
Regulatory requirements to Know Your Customer (KYC) amplify the need to simplify client data and to better manage documents. Looking to fill those needs, DTCC in collaboration with Barclays, BNY Mellon, Credit Suisse, Goldman Sachs, JPMorgan Chase and State Street, founded Clarient Global LLC (Clarient). KYC is the process used by a business to verify the identity of their clients.
Clarient recently launched its Public Know Your Customer (PKYC) Service, which leverages legal entity data and associated evidence sourced entirely from the public domain (e.g., financial regulators, business registries, stock exchanges), to help banks and broker-dealers manage the operational challenges and high costs of internally managing KYC data and documentation requirements.
RELATED: To learn more about Clarient’s PKYC Service read the factsheet or visit http://www.clarientglobal.com. To learn more about DTCC's Entity Data Management Services, visit http://www.dtcc.com/data-services/reference-data.
Carl Needham, Clarient PKYC Product Executive Director, spoke with DTCC Connection to share his insights about the PKYC Service.
DTCC Connection: Why was the PKYC Service created?
Carl Needham: The Clarient PKYC service was created to alleviate the burden of sourcing publicly available data for legal entities, accelerating the KYC process for users from initial on-boarding, through to periodic review and remediation. It is offered via the Clarient Entity Hub, which was established in response to the industry’s call for a single, global platform to view client reference data that adheres to uniform data standards designed specifically with KYC standards at the heart. Firms today are spending a tremendous amount of time, effort and money to internally manage this data and Clarient offers savings in those areas.
Connection: How does the PKYC Service work?
Needham: A firm submits its PKYC requests through the Clarient Entity Hub, for a specific entity or batch of required entities. For each entity, 58 defined data fields are researched to provide the specific details required to support the KYC process. All of this data is gathered from authorized public domain sources, such as financial regulators, business registries and stock exchanges. Clarient’s trained research analysts ensure that the data is validated by evidentiary proof from the source of origin. The user can easily view the facts about their requested entity and its audit trail in the Clarient Entity Hub.
Connection: Is the PKYC Service integrated with other DTCC assets?
Needham: Yes, the foundation of the PKYC Service is a growing library of approximately 2 million existing legal entity records from Avox, the industry’s leading source of validated and maintained legal entity data.
Connection: What are the benefits to firms for using Clarient’s PKYC Service?
Needham: This service enhances efficiency in a firm’s refresh of its KYC information and remediation processes and allows them to preform these processes with no provider involvement, meaning that the time spent managing requests and multiple sources of information will be virtually eliminated allowing them to spend more time on value add activities.
Connection: What if clients need more than public data to complete their KYC requirements?
Needham: In addition to the PKYC service, the Clarient Entity Hub offers varying levels of support for KYC data and documentation management, including a Full KYC Service that enables the exchange of private data and documents between two parties in a permissioned environment. Subscribers to the PKYC service are able to easily establish relationships and scale up to the Full KYC Service if it becomes necessary at any point to exchange private data and documentation.