JDX Consulting is publishing a new glossary for Know Your Client (KYC) and Anti-Money Laundering (AML) to help financial institutions better understand the industry jargon. The glossary, which is a 75-page book with over 300 terms and definitions, also includes the latest terminology for Foreign Account Tax Compliance Act (FATCA).
There is so much jargon around KYC so a glossary is essential to provide firms with a quick reference guide to look up key terms as they adjust to the new procedures required to support KYC policies. The goal is for every back office dealing with KYC to have a copy of the glossary.
The regulators are focusing more on KYC as financial institutions work to on-board new and existing clients onto their systems to meet various new requirements. Specifically, harmonising relevant on-boarding and account maintenance processes is critical for reporting under Dodd-Frank and EMIR and when implementing FATCA next year. The operational teams in charge of on-boarding need the resources and skills to onboard new and existing clients to their platforms and this glossary will support education and training of these teams.
One of the challenges with KYC is that a firm is dependent upon the client to give the right information and without a client’s provision of accurate information the firm can no longer trade with the client. Therefore, a second major use of the glossary is to aid the firms in educating their clients as to the meaning of KYC terms, which will also expedite the onboarding process. The hope is that the existence of such an education tool will also raise the profile of KYC.
JDX is printing 5000 hard copies for existing and potential clients but will consider also making an online version available. The glossary will be available in early June and you can contact them directly for a copy.