Worldwide transactions platform SWIFT has announced that its new scheme for enhancing cross-border fund transfers has already attracted 45 of the world’s leading banks.
Supplied to clients under an all-new service level agreement, but delivered through SWIFT’s existing electronic network, the Global Payments Innovation Initiative was set up to enable “smart collaboration
” between banks, and will enter a pilot phase early this year.
During that phase, the service will focus on business-to-business payments, with the aim of helping corporates grow their global presence, improve supplier relationships and achieve greater treasury efficiencies.
Key features of the enhanced service include:
As SWIFT head of correspondent banking Wim Raymaekers explained: “Designed for the corporate treasurer, this initiative will enable banks to dramatically improve their customers’ cross-border payments experience.
“Leveraging SWIFT’s global community and the innovative application of its proven technology, the new service should find rapid adoption and make a hugely positive impact on the global payments landscape.”
Among the banks that have signed up so far are BNP Paribas, JPMorgan Chase, Santander, Lloyds Banking Group and Bank of Tokyo-Mitsubishi UFJ.
The payments provider also revealed that more than 2,000 financial institutions have now signed up to its special compliance registry for the Know Your Customer (KYC) framework: a global, regulatory standard, promulgated in various national statutes, that seeks to curb money laundering by providing transaction partners with details about each other’s identities.
Aiming to help institutions effectively comply with the framework, SWIFT’s dedicated KYC Registry was devised as a hub for maintaining a standardised set of ‘baseline’ data and documents on each signatory, which contributors are then able to share with their counterparties.
Each bank retains ownership of its own data, plus control over which other parties can view it. Banks are charged neither for contributing, nor sharing, their information. Launched in December 2014, the Registry is now used in more than 200 countries and territories.
SWIFT head of KYC compliance services Bart Claeys said: “The KYC Registry is helping financial institutions increase efficiency and mitigate cost and risk related to Know Your Customer compliance.
“Its rapid adoption demonstrates the important role of standardised, community-driven solutions in addressing compliance challenges. SWIFT will continue to expand its offering of utility solutions to meet the industry’s evolving KYC needs.”