UAE Banks Federation partners with SWIFT to lead industry discussion about global financial crime regulations

The UAE Banks Federation welcomed more than 65 senior bankers to a briefing at the Federation’s headquarters in Abu Dhabi about how correspondent banks can comply with KYC regulations 

Dubai, 1 April 2015 – SWIFT joined the UAE Banks Federation to bring together senior representatives from financial institutions across the region to look at the impact of global regulations and to discuss the adoption of global best practice. 

Nasser Sarris, General Manager of the UAE Banks Federation, who gave the welcome address, says: “Financial crime is a growing threat to the global economy and is a challenge that must be met by all financial institutions. The Federation sees the promotion of insightful discussion on such matters as a key part of its industry role and we are happy to partner with SWIFT to help our members find the most efficient solutions to common problems.”

More than 65 delegates joined the meeting, including senior financial institution and transaction bankers as well as compliance experts. The discussion addressed the challenges faced by the region’s banks as they manage increasingly onerous regulatory requirements aimed at eliminating money laundering and terrorist financing.  

A particularly hot topic for discussion was so-called KYC – know-your-customer – regulations. These apply to banks in the same way as they do to retail customers and represent a huge operational challenge for banks. Failure to comply can be costly in terms of reputational damage as well as risking punitive fines. 

KYC regulations require banks to collect and maintain up-to-date information about every institution that they deal with. Doing this and performing due diligence checks on correspondent banking partners is costly and time consuming, and the effort is duplicated by individual banks around the world. 

Sido Bestani, Head of MENA & Turkey, SWIFT, says: “Banking relationships are being terminated around the world because of a reduced risk appetite and growing concerns about KYC transparency. For banks, managing the data and processes required to comply with regulations on a bilateral basis is inefficient and costly. This is why SWIFT has developed its KYC Registry. This can help banks to reduce KYC-related costs and mitigate compliance-related risks in a simple, secure and standards-driven way.

SWIFT has a long relationship with the UAE Banks Federation, including the hosting of such joint events on topics of interest, and sees it as a pivotal partner in the region. Speaking about the briefing, Bestani adds: “These kinds of events are a crucial platform for informed discussion and a vital forum for industry colleagues to share experiences. We are therefore delighted to partner with the UAE Banks Federation and the broader SWIFT community as they look for common solutions to industry-wide, global challenges such as KYC regulations.”