Ada Pertanyaan? Hubungi Kami 
2026 Hak Cipta Milik Hukumonline.com
Produk Pilihan
Ada Pertanyaan? Hubungi Kami
Robert Sidauruk
The banking sector plays a vital role in maintaining active growth across the ASEAN region. At the same time however, the sector is also expected to act as a gatekeeper with regard to money-laundering crimes through the implementation of the so-called Know Your Customer (KYC) principle. These two interests have sometimes collided in the past however, leaving banks in a difficult situation as they attempt to remove risks via KYC on the one hand, while still offering equal banking access to all on the other.
During the recent Thomson Reuters ASEAN Regulatory Summit, which was held in Singapore on Tuesday, 24 November 2015, Anthonia Hui, CEO of Al Wealth Partners, A Singapore-based banking-investment advisory office, explained that the challenge inherent in implementing the KYC principle did not primarily relate to either process or volume, but instead to the banks’ way of dealing with their customers.
Many banks are currently increasing their KYC regulatory requirements as regards their relationship with their customers, however this cautious approach can lead to a lot of bureaucratic red tape and slow down transactions, in turn leading to inefficiencies. For instance, a customer wishing to open bank accounts across five different banks may be required to satisfy a number of different requirements at each bank. This can destroy a customer’s trust and lead to lost business opportunities.
Mrs. Hui suggestion is that banks need to change their approach to their customers as regards the implementation of the KYC principle. Furthermore, Mrs. Hui also emphasized the importance of setting up a standard database and of building a system capable of storing customer-related documents, as required by KYC policy. Ideally, any bank should be able to access the profiles of prospective customers.
“Banks have to begin to change their approach to their customers when implementing the KYC principle,” Mrs. Hui contended.
There are at least three advantages to this approach, according to Mrs. Hui. Firstly, it will reduce redundant and inefficient efforts by banks which are looking to verify customer details. Secondly, the bank will have more time to review its KYC policy. And thirdly, interbank conflicts as regards customer verification can be avoided.
Another important issue as regards the implementation of so-called “de-risking” practice is the fact that overly rigid KYC policy will likely harm the market, depriving more underprivileged members of society of access, reducing the choices available to customers, and ultimately increasing costs.
Jeff Plein, Chief Operating Officer for Fullerton Fund Management, added that KYC measures could be complex, costly, and lengthy. Moreover, the burden is doubled when implementing cross-border KYC policies. The volume of work and paperwork involved, as well as the requirements of various regulations in different jurisdictions, mean that the implementation of KYC measures can be a tortuous process.
In supporting the idea of a single database, Mr. Plein explained that such an idea should prove advantageous, as currently the industry still had to use a slow and laborious manual system in order to implement KYC policy. Plein asserted that there was a definite need to increase efficiency and transparency between financial institutions when implementing KYC policy.
“The presence of a central information depository that can be used by multiple financial-service providers will create substantial rewards across the industry,” stated Mr. Plein.
While supporting the idea of a centralized customer database, Lim Cheng Khai, Director of the Capital Markets Intermediaries Department at the Monetary Authority of Singapore (MAS) highlighted several challenges that needed to be met in terms of realizing this idea. Firstly, there must be clear policy as regards the protection of customer confidentiality, as well as the reliability of any information obtained and stored.
Secondly, in order to realize this idea, the banking sector cannot rely on national governments and should seize the initiative itself. And thirdly, there will be also additional challenges if a central database is to be introduced within a wider ASEAN context, due to differences in systems, regulations, and standards between the ASEAN member states.
“Despite the challenges involved, the idea of setting up a centralized database should help us to overcome several existing issues as regards the financial-service sector,” added Mr. Khai.
(sp)
Thomson Reuters ASEAN Regulatory Summit. Photo by: RFS
The banking sector plays a vital role in maintaining active growth across the ASEAN region. At the same time however, the sector is also expected to act as a gatekeeper with regard to money-laundering crimes through the implementation of the so-called Know Your Customer (KYC) principle. These two interests have sometimes collided in the past however, leaving banks in a difficult situation as they attempt to remove risks via KYC on the one hand, while still offering equal banking access to all on the other.
During the recent Thomson Reuters ASEAN Regulatory Summit, which was held in Singapore on Tuesday, 24 November 2015, Anthonia Hui, CEO of Al Wealth Partners, A Singapore-based banking-investment advisory office, explained that the challenge inherent in implementing the KYC principle did not primarily relate to either process or volume, but instead to the banks’ way of dealing with their customers.
Many banks are currently increasing their KYC regulatory requirements as regards their relationship with their customers, however this cautious approach can lead to a lot of bureaucratic red tape and slow down transactions, in turn leading to inefficiencies. For instance, a customer wishing to open bank accounts across five different banks may be required to satisfy a number of different requirements at each bank. This can destroy a customer’s trust and lead to lost business opportunities.
Mrs. Hui suggestion is that banks need to change their approach to their customers as regards the implementation of the KYC principle. Furthermore, Mrs. Hui also emphasized the importance of setting up a standard database and of building a system capable of storing customer-related documents, as required by KYC policy. Ideally, any bank should be able to access the profiles of prospective customers.
“Banks have to begin to change their approach to their customers when implementing the KYC principle,” Mrs. Hui contended.
There are at least three advantages to this approach, according to Mrs. Hui. Firstly, it will reduce redundant and inefficient efforts by banks which are looking to verify customer details. Secondly, the bank will have more time to review its KYC policy. And thirdly, interbank conflicts as regards customer verification can be avoided.
Another important issue as regards the implementation of so-called “de-risking” practice is the fact that overly rigid KYC policy will likely harm the market, depriving more underprivileged members of society of access, reducing the choices available to customers, and ultimately increasing costs.
Jeff Plein, Chief Operating Officer for Fullerton Fund Management, added that KYC measures could be complex, costly, and lengthy. Moreover, the burden is doubled when implementing cross-border KYC policies. The volume of work and paperwork involved, as well as the requirements of various regulations in different jurisdictions, mean that the implementation of KYC measures can be a tortuous process.
In supporting the idea of a single database, Mr. Plein explained that such an idea should prove advantageous, as currently the industry still had to use a slow and laborious manual system in order to implement KYC policy. Plein asserted that there was a definite need to increase efficiency and transparency between financial institutions when implementing KYC policy.
“The presence of a central information depository that can be used by multiple financial-service providers will create substantial rewards across the industry,” stated Mr. Plein.
While supporting the idea of a centralized customer database, Lim Cheng Khai, Director of the Capital Markets Intermediaries Department at the Monetary Authority of Singapore (MAS) highlighted several challenges that needed to be met in terms of realizing this idea. Firstly, there must be clear policy as regards the protection of customer confidentiality, as well as the reliability of any information obtained and stored.
Secondly, in order to realize this idea, the banking sector cannot rely on national governments and should seize the initiative itself. And thirdly, there will be also additional challenges if a central database is to be introduced within a wider ASEAN context, due to differences in systems, regulations, and standards between the ASEAN member states.
“Despite the challenges involved, the idea of setting up a centralized database should help us to overcome several existing issues as regards the financial-service sector,” added Mr. Khai.
(sp)
Robert Sidauruk
The banking sector plays a vital role in maintaining active growth across the ASEAN region. At the same time however, the sector is also expected to act as a gatekeeper with regard to money-laundering crimes through the implementation of the so-called Know Your Customer (KYC) principle. These two interests have sometimes collided in the past however, leaving banks in a difficult situation as they attempt to remove risks via KYC on the one hand, while still offering equal banking access to all on the other.
During the recent Thomson Reuters ASEAN Regulatory Summit, which was held in Singapore on Tuesday, 24 November 2015, Anthonia Hui, CEO of Al Wealth Partners, A Singapore-based banking-investment advisory office, explained that the challenge inherent in implementing the KYC principle did not primarily relate to either process or volume, but instead to the banks’ way of dealing with their customers.
Many banks are currently increasing their KYC regulatory requirements as regards their relationship with their customers, however this cautious approach can lead to a lot of bureaucratic red tape and slow down transactions, in turn leading to inefficiencies. For instance, a customer wishing to open bank accounts across five different banks may be required to satisfy a number of different requirements at each bank. This can destroy a customer’s trust and lead to lost business opportunities.
Mrs. Hui suggestion is that banks need to change their approach to their customers as regards the implementation of the KYC principle. Furthermore, Mrs. Hui also emphasized the importance of setting up a standard database and of building a system capable of storing customer-related documents, as required by KYC policy. Ideally, any bank should be able to access the profiles of prospective customers.
“Banks have to begin to change their approach to their customers when implementing the KYC principle,” Mrs. Hui contended.
There are at least three advantages to this approach, according to Mrs. Hui. Firstly, it will reduce redundant and inefficient efforts by banks which are looking to verify customer details. Secondly, the bank will have more time to review its KYC policy. And thirdly, interbank conflicts as regards customer verification can be avoided.
Another important issue as regards the implementation of so-called “de-risking” practice is the fact that overly rigid KYC policy will likely harm the market, depriving more underprivileged members of society of access, reducing the choices available to customers, and ultimately increasing costs.
Jeff Plein, Chief Operating Officer for Fullerton Fund Management, added that KYC measures could be complex, costly, and lengthy. Moreover, the burden is doubled when implementing cross-border KYC policies. The volume of work and paperwork involved, as well as the requirements of various regulations in different jurisdictions, mean that the implementation of KYC measures can be a tortuous process.
In supporting the idea of a single database, Mr. Plein explained that such an idea should prove advantageous, as currently the industry still had to use a slow and laborious manual system in order to implement KYC policy. Plein asserted that there was a definite need to increase efficiency and transparency between financial institutions when implementing KYC policy.
“The presence of a central information depository that can be used by multiple financial-service providers will create substantial rewards across the industry,” stated Mr. Plein.
While supporting the idea of a centralized customer database, Lim Cheng Khai, Director of the Capital Markets Intermediaries Department at the Monetary Authority of Singapore (MAS) highlighted several challenges that needed to be met in terms of realizing this idea. Firstly, there must be clear policy as regards the protection of customer confidentiality, as well as the reliability of any information obtained and stored.
Secondly, in order to realize this idea, the banking sector cannot rely on national governments and should seize the initiative itself. And thirdly, there will be also additional challenges if a central database is to be introduced within a wider ASEAN context, due to differences in systems, regulations, and standards between the ASEAN member states.
“Despite the challenges involved, the idea of setting up a centralized database should help us to overcome several existing issues as regards the financial-service sector,” added Mr. Khai.
(sp)
Thomson Reuters ASEAN Regulatory Summit. Photo by: RFS
The banking sector plays a vital role in maintaining active growth across the ASEAN region. At the same time however, the sector is also expected to act as a gatekeeper with regard to money-laundering crimes through the implementation of the so-called Know Your Customer (KYC) principle. These two interests have sometimes collided in the past however, leaving banks in a difficult situation as they attempt to remove risks via KYC on the one hand, while still offering equal banking access to all on the other.
During the recent Thomson Reuters ASEAN Regulatory Summit, which was held in Singapore on Tuesday, 24 November 2015, Anthonia Hui, CEO of Al Wealth Partners, A Singapore-based banking-investment advisory office, explained that the challenge inherent in implementing the KYC principle did not primarily relate to either process or volume, but instead to the banks’ way of dealing with their customers.
Many banks are currently increasing their KYC regulatory requirements as regards their relationship with their customers, however this cautious approach can lead to a lot of bureaucratic red tape and slow down transactions, in turn leading to inefficiencies. For instance, a customer wishing to open bank accounts across five different banks may be required to satisfy a number of different requirements at each bank. This can destroy a customer’s trust and lead to lost business opportunities.
Mrs. Hui suggestion is that banks need to change their approach to their customers as regards the implementation of the KYC principle. Furthermore, Mrs. Hui also emphasized the importance of setting up a standard database and of building a system capable of storing customer-related documents, as required by KYC policy. Ideally, any bank should be able to access the profiles of prospective customers.
“Banks have to begin to change their approach to their customers when implementing the KYC principle,” Mrs. Hui contended.
There are at least three advantages to this approach, according to Mrs. Hui. Firstly, it will reduce redundant and inefficient efforts by banks which are looking to verify customer details. Secondly, the bank will have more time to review its KYC policy. And thirdly, interbank conflicts as regards customer verification can be avoided.
Another important issue as regards the implementation of so-called “de-risking” practice is the fact that overly rigid KYC policy will likely harm the market, depriving more underprivileged members of society of access, reducing the choices available to customers, and ultimately increasing costs.
Jeff Plein, Chief Operating Officer for Fullerton Fund Management, added that KYC measures could be complex, costly, and lengthy. Moreover, the burden is doubled when implementing cross-border KYC policies. The volume of work and paperwork involved, as well as the requirements of various regulations in different jurisdictions, mean that the implementation of KYC measures can be a tortuous process.
In supporting the idea of a single database, Mr. Plein explained that such an idea should prove advantageous, as currently the industry still had to use a slow and laborious manual system in order to implement KYC policy. Plein asserted that there was a definite need to increase efficiency and transparency between financial institutions when implementing KYC policy.
“The presence of a central information depository that can be used by multiple financial-service providers will create substantial rewards across the industry,” stated Mr. Plein.
While supporting the idea of a centralized customer database, Lim Cheng Khai, Director of the Capital Markets Intermediaries Department at the Monetary Authority of Singapore (MAS) highlighted several challenges that needed to be met in terms of realizing this idea. Firstly, there must be clear policy as regards the protection of customer confidentiality, as well as the reliability of any information obtained and stored.
Secondly, in order to realize this idea, the banking sector cannot rely on national governments and should seize the initiative itself. And thirdly, there will be also additional challenges if a central database is to be introduced within a wider ASEAN context, due to differences in systems, regulations, and standards between the ASEAN member states.
“Despite the challenges involved, the idea of setting up a centralized database should help us to overcome several existing issues as regards the financial-service sector,” added Mr. Khai.
(sp)