JFSC committed to helping Industry with KYC utility
We have announced our commitment to support the financial services industry with the development of a shared ‘know your customer’ (KYC) utility.
The purpose of a KYC utility would be to provide a shared tool for verifying customers’ identity. This in theory could result in reduced costs when taking on new clients, whilst introducing an enhanced degree of assurance as to the quality of these client processes.
We set up a working group in 2019 with representatives of Jersey’s financial services sector, in order to understand appetite for a utility of this kind and to provide a platform to understand any challenges for implementation. We also had further discussions with individual firms, trade associations and technology providers.
The main findings from the working group are:
- There appears to be scope for a shared KYC utility based in Jersey which will underpin effective island-wide combatting of financial crime, while helping the sector to control costs, provided the utility is designed to meet the complex global client base of Jersey’s international financial sector
- A successful utility will need a strong financial, governance and resource commitment from a core group in the finance sector. This group should preferably cover multiple sectors, for example a bank, a major trust company and a major funds services provider
- The opportunity for such a core group to form and be successful is optimised if we commit up front to participate in the design of the utility;
- A period of reflection before the Government of Jersey initiates a further forum or bilateral discussion would be helpful. This will allow the rapid changes in technology to be assessed by the financial sector and for businesses to conduct informal discussions.
You can find more information on our findings in our published report Exploring smart regulation: An assessment of the options for developing a shared KYC utility for the Jersey financial services sector.