With enhanced regulatory BSA/AML/CTF scrutiny, robust customer due diligence and onboarding/customer identification processes have become the focus for Beneficial Ownership and Ultimate Beneficial Ownership (UBO) identification and verification.
Ultimately, just how Beneficial Ownership information is internally collected, verified, maintained and shared is a decision for leaders and stakeholders. But the importance of having a Single Customer View (SCV) fed by reliable, accurate and timely data cannot be underestimated in ensuring compliance and achieving operational efficiencies. Leading financial organizations are increasingly taking advantage of data analytics tools and information-management best practice to migrate away from traditional ‘siloed’ compliance testing toward a more analytical, integrated approach that ensures ‘end-to-end’ data efficiency, accuracy and validation.
The adoption of a Master Data Management approach can really help achieve the ‘deep dive’ required by Beneficial Ownership requirements. At the same time, it can improve operational efficiency and on-demand enterprise-wide risk visibility. By placing information into a central data repository at the heart of the organization, business units across the enterprise are able to access a ‘Golden Copy’ or ‘Single Customer View’ (SCV). By automating customer due diligence processes via entity resolution software, organizations have the flexibility to spend more time and effort on enhanced due diligence while keeping human resources costs in check.
Case Study – Global Bank
- The bank recognized data governance was key to ensuring compliance
- Wanted organizational efficiencies and profitable growth with accurate, decision-ready intelligence across all business units
- Project delivery against a background of inherently siloed infrastructures, systematically opposed data entry processes and a raft of different CRM and data suppliers
- Created a fully accurate, always up-to-date ‘Golden Copy’ of entity records throughout its global organization
- The bank recognized six figure savings simply by being able to redeploy staff to other business critical activities
- It now has the tools to operate with complete visibility, report with complete confidence and to grow profitably
Key to this is the utilization of the D&B D-U-N-S ® Number — a unique nine-digit identifier for businesses. Allocated to more than 259 million businesses worldwide, D-U-N-S (data universal number system) Numbers bring together extensive global data, corporate and minority linkage as well as local data capture for in excess of 90 million shareholder connections with checks run against sanction lists, PEPs, stock exchange and regulators’ lists.
The D-U-N-S Numbers also allow for data to be easily integrated into enterprise data management and propriety processes. It is then accurately referenced and linked to help ensure that the data needed is accessible when required, comparable for quick analysis and research. It also provides the ability to easily access relevant documents and information representing a potential ‘one-step’ solution for Beneficial Ownership and UBO screening.
Turning Risk into Opportunity
Adopting D-U-N-S also enables financial institutions to break the costly and lengthy remediation cycle. As D-U-N-S is continually updated, it can be confidently used in know your customer verification of existing customers in line with recommended internal and external timeframes. And as it sits in the center of the business, it can help speed up operational and customer decision-making and enable efficiency gains across all business departments. Such connectivity is highly desirable.
Reliable, continually updated data sources are vital in achieving Beneficial Ownership identification and verification as well as in wider regulatory compliance and enterprise-wide AML risk management. While the complexities of Beneficial Ownership can bring some challenges, approaching Beneficial Ownership compliance from a more analytical, integrated approach could help financial organizations become more agile and risk-robust enterprises. That’s good for their business, and their customers.
For more information on single customer view, download our whitepaper Beneficial Ownership - Why The Devil Really is in the Detail.