Dominican Republic Banks Adopt Swift KYC Registry to Enhance Anti-Money Laundering Compliance
The Central Bank of the Dominican Republic has announced that banks in the country will adopt Swift’s central Know Your Customer (KYC) utility, a move aimed at strengthening mechanisms for preventing and mitigating financial crimes.
A Key Initiative in Anti-Money Laundering Compliance
What is the Swift KYC Registry?
The Swift KYC Registry is a centralized platform that allows banks to share standardized sets of information with their counterparties for correspondent banking Know Your Customer (KYC) compliance. This registry provides a simple, secure way for banks to exchange information and documents required for effective due diligence programs.
Benefits of Adopting the Swift KYC Registry
- Enhanced Compliance: The adoption of the Swift KYC Registry is expected to raise compliance levels with applicable anti-money laundering standards.
- Simplified Due Diligence: Banks can contribute an agreed ‘baseline’ set of data and documentation for validation by Swift, which they can then share with their counterparties.
- Control Over Information Sharing: Each bank retains ownership of its own information, as well as control over which other institutions can view it.
- Cost-Effective: The service is not charged for data contribution or for using the registry to share KYC information with other banks.
Global Adoption and Support
With entities from across 109 countries now on its registry, Swift has demonstrated its commitment to supporting its community in complying with financial crime compliance regulations. The move is seen as a positive step towards strengthening mechanisms for preventing and mitigating financial crimes in the Dominican Republic.
Conclusion
The adoption of the Swift KYC Registry by banks in the Dominican Republic is a key initiative in helping the country’s banking community comply with financial crime compliance regulations. It promotes collaborative approaches to meet increasing financial crime compliance requirements, ultimately contributing to a safer and more secure financial environment.