On May 23, ASIFMA shared its updated KYC/AML best practices guide.
ASIFMA issued updated Best practices for KYC/AML (of May 1, 2023) which proposes a set of best practices to harmonize and standardize the application of certain key areas.
These areas are know-your-customer (KYC) as well as anti-money laundering (AML) requirements in Asia; best practices are based on input and industry feedback from a focused working group of ASIFMA members from both the buy as well as the sell side.
Follows HKMA Jan. 2023 consult re guide on AML/CFT for banking firms, see #160626.
The objective of this paper is to help industry participants gain an understanding of current best practices, drive harmonization and standardization in KYC/AML in APAC.
Best practices have been drafted as generally as possible to be jurisdiction-neutral.
However, ASIFMA explained that reference was largely drawn from industry consensus of best practices currently applied by members in Hong Kong as well as Singapore.
Guided that effective AML measures in banking sector are essential to ensure financial institutions can perform gatekeeper roles, are able to conduct robust, risk-based KYC.
Specifically, so that they can manage money-laundering and terrorism-financing risks.
Topics covered in this guidance include overall risk assessment; client due diligence (CDD) measures - identification of customer; CDD measures - verification of customer.
CDD - establishing business relationship; CDD - person purporting to or appointed to act on behalf of the customer; as well as cross-border correspondent relationships.
Third party deposits, payments; when CDD measures must be carried out; simplified customer DD; duty to continuously monitor business relationships; risk-based approach; carrying out CDD measures via intermediaries / 3rd parties; documentation.
B/D; Corp; IA; Inv Co
PR 5/23/2023; Gd 5/1/2023
AML; Compliance; Product Administration; Risk
Asia Regional; Hong Kong; Singapore; Cross-Border
Corporate; Deposits; Fund Mgt; Payments; Securities