HSBC Holdings and Morgan Stanley are working with Genpact and Markit to develop a client-screening system to identify suspected client accounts by various software and database, so as to combat money laundering and terrorism financing.
Markit Group and Bermuda-based Genpact said that they are developing the first centralised service for end-to-end management of client on boarding and other know-your-customer (KYC) requirements in the financial markets.
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The service will allow banks to start new trading relationships faster and cut costs by sharing expenses, according to a statement from Markit and Genpact.
The service is expected to enable the financial services industry to streamline operations, reduce costs and enhance compliance through better data management and quality.
Genpact and Markit are planning to roll out a shared service for dealers in the second half of 2014.
The service promises to centralize onboarding of new clients, manage client reference data and keep existing client information up to new standards.
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By GlobalDataThe service will also produce an industry-wide golden copy of client reference data, speed up initiation of relationships with new clients, save costs and reduce multiple demands for the same documents and information.
The statement said: "Expertise from their teams of professionals will help ensure that the service meets the complex on boarding needs of large financial institutions. Asset managers will also contribute to the design and development process."
The new service will help drive higher standards, consistency and best practice, said David Burnett, COO of HSBC’s banking and markets unit.
Jeff Gooch, managing director and global head of processing at Markit, said: "Together, Genpact and Markit offer unique expertise, robust technology and a track record in providing solutions for account onboarding and KYC document management.
"Centralizing the collection and management of KYC documentation creates massive efficiencies for the industry and can save large firms tens of millions of dollars per year. Through technology and the standardization of processes, we can increase data quality, speed operations and improve compliance," Gooch added.
