Caproasia.com | The leading source of data, research, information & resource for financial professionals, investment managers, professional investors, family offices & advisors to institutions, billionaires, UHNWs & HNWs. Covering capital markets, investments and private wealth in Asia. How do you invest $3 million to $300 million? How do you manage $20 million to $3 billion of assets? Caproasia - Learn more



This site is for accredited investors, professional investors, investment managers and financial professionals only. You should have assets around $3 million to $300 million or managing $20 million to $3 billion.










The Insider: Impact of KYC and AML on Asset Managers in Asia-Pacific

In recent years, the spotlight on KYC (Know-Your-Client) and AML (Anti-Money Laundering) had caused tremendous difficulties for the global financial industry.

Jeff Plein, Chief Operating Officer of Fullerton Fund Management provides an exclusive insider perspective on the impact of KYC and AML on Asset Managers in Asia-Pacific


The Impact of KYC & AML on Asset Managers

The impact of KYC and AML is tremendous.  Asset Managers have to spend more time onboarding client, face rising onboarding and systems costs, and keep existing clients data constantly updated.



- Article continues below -



Sign Up
Basic Member: $5 Monthly | $60 Yearly
Newsletter Daily 2 pm (Promo): $20 Monthly | $180 Yearly (FP: $680)


The 2024 Investment Day
6th March Hong Kong | 13th March Singapore

Private Equity, Hedge Funds, Boutique Funds, Private Markets & more. Taking place on 6th March 2024 in Hong Kong, 13th March 2024 in Singapore.
Visit | Register here


The 2024 Family Office Summit
10th April Hong Kong | 24th April Singapore

Join 100+ single family offices & family office professionals in Hong Kong & Singapore
Links: 2024 Family Office Summit | Register here





Keynotes:

  • Client onboarding and systems costs had increased
  • Client onboarding times have lengthened
  • Keep existing customer data always up-to-date

 

How KYC & AML Created Massive Problems

Singapore Financial Center

In Singapore, Fund Managers are required to identify and screen mandated officials.  Small firms will find the cost of setting up a compliance department prohibitively expensive.

Each financial institution interprets regulatory policy through their own organizational lens, leading to non-standardized KYC and AML procedures.  It is also increasingly complex to operate across jurisdictions.

There are also heavy-documentation for markets trading derivatives, structured products and non-exchange OTC instruments.  And there is always the necessary hard copy and certified copies of documents.

Keynotes:

  • Screening Politically Exposed Persons (PEP)
  • Cost of compliance unit in small firms is expensive
  • Different interpretation of regulatory policy
  • Non-standardized KYC and AML procedures
  • Different regulatory process in different jurisdiction
  • Heavy documentation for financial products and instruments
  • Hard copy and certified true copies of documents

 

How KYC & AML have Affected Clients

The impact of KYC & AML have affected clients greatly.  There are constant inconsistencies in data and documentation requests. These are a direct result of different interpretations of regulations.

As clients will have multiple relationships (with Asset Managers), and each Asset Manager interprets legislation differently, the administrative burden can become significant.  The end result is longer onboarding times, increased costs for both the client and the asset manager.  These leads to delays in launching mandates.

By providing more information to Asset Managers, clients are concerned about how sensitive client data is being consumed and stored.

” clients are concerned about how sensitive client data is being consumed and stored “

With identity theft on the rise, clients rightly want to know who is accessing their data and what is being done to protect it.

Keynotes:

  • Constant inconsistencies in data and documentation requests
  • Asset Managers interprets legislation differently
  • Longer onboarding times
  • Increased costs for clients and Asset Managers
  • Delays in launchign mandates
  • Where sensitive data are being stored and used
  • Security measures to protect the sensitive data

 

How KYC & AML Affected Operations

Existing KYC and AML workflows are manual, while audit trails are paper-based.  Manual workflows between teams may also result in inadvertent slippages of controls.  For example, keeping track of expiry of information.

Apart from the manual process, operationally, it also involves managing voluminous Anti-Money Laundering screenings.  This is time-consuming and not cost-efficient for firms to search for information from independent public sources.

The unharmonized global KYC and AML rules across multiple jurisdictions create tension with clients who are fatigued by multiple requests from various financial institutions.

Keynotes:

  • Existing KYC and AML workflows are manual
  • Audit trails are paper-based
  • Manual workflows between teams results in slippages of controls
  • Example: Expiry of information
  • Voluminous AML screenings
  • Screening from independent public sources
  • Entire process is time-consuming and not cost-efficient

 

Exclusive: At Fullerton Fund Management

To help tackle these challenges, Fullerton Fund Management recently selected Thomson Reuters Org ID.

Org ID provides best practices and remain up-to-date with KYC and AML regulations in Singapore, APAC and globally.  It also improves efficiency for their staffs as ORG ID collects, verifies, screens and continuously monitors entities and related parties, highlighting risks throughout the process.

” the ultimate decision on whether or not to onboard a client “

Staffs can concentrate on more value-added tasks (such as making risk-based decisions on PEPs, sanctions and adverse media) that determines the ultimate decision on whether or not to onboard a client.

 

About Thomson Reuters Org ID

A global solution developed to simplify and streamline counter-party due diligence and the ongoing maintenance of Know-Your-Customer (KYC) compliance records.

Thomson Reuters Org ID is an end-to-end client identity and verification service that provides a complete legal entity due diligence and document management service through which financial institutions and their end clients (asset managers, hedge funds, correspondent banks and corporates) can more effectively manage their response to new KYC regulatory requirements.

Visit: Thomson Reuters Org ID

 

How the Industry can Improve

KYC and AML process can be centralised as there are multiple firms in the industry onboarding the same client.

It benefits clients. The client record is created once, maintained and shared.  This will reduce cost, allow shorter onboarding times and less of a regulatory burden for individual Asset Managers.

The customer experience will also improve: clients will only have to provide data and documents to a centralized service once.

Keynotes:

  • KYC and AML process can be centralised
  • Multiple firms in the industry onboarding the same client
  • Benefits clients
  • Single client record to maintain and share
  • Lower cost, shorter onboarding times, less regulatory burden
  • Customer experience will improve
  • Client provides data and document to a centralized server

 

Singapore as the Launch Pad for KYC & AML Solutions

Singapore benefits from a progressive and supportive regulator who actively encourages the market to look for solutions and improve market conduct.

” Singapore benefits from a progressive and supportive regulator “

Certain Singapore banks are already looking at innovative solutions for the banking sector. Other financial service communities, including asset management, should also progress in this area – or risk being left behind.

The adoption of a centralized KYC and AML model eliminates this risk.  This also means interpreting the policies driving data and documentation collection.  These will create a standardized operating model, with digitization, will drive efficiencies and lower costs.

 

Removing The “Hassle Tax”

There is one additional driver that the industry and our clients face: the ‘hassle tax’ involved in dealing with KYC and AML documentation-related requests.

If we can remove this tax and save our clients time and money in responding to KYC requests, whilst ensuring that their private information is kept safe, then we will create an incentive for widespread adoption of this model.

(‘Hassle tax’ is the friction costs, frustration, delays and administrative headache of managing everything about the KYC and AML requirements.)

 

Brighter Days for KYC & AML

There are two drivers for the successful adoption of a centralized solution:

Regulatory support – the industry needs the regulator(s) to publicly support the use of a centralized model.

Community support – the community of banks and asset managers should collectively agree to centralize their own data and encourage clients to do the same. With this momentum, the efficiencies of a centralized solution will become obvious in a very short time.

 

The Time to Change is Now

The opportunity to materially change the way the industry conducts KYC and AML is real. There is no better time for the asset management industry to work together to drive positive change in a very meaningful and impactful way.

 

The article is edited by Caproasia Online Editorial Team.  The original content was written by Jeff Plein, Chief Operating Officer of Fullerton Fund Management: KYC and AML in the APAC region:  An innovative solution to deep-rooted challenges

About Jeff Plein, COO Fullerton Fund Management

Jeff Plein is the COO of Fullerton Fund Management. He is responsible for Fullerton’s Compliance, Finance, Investment and Fund Operations, Legal, Risk, and Technology globally. Prior to Fullerton, Jeff held senior business operations roles in Asia Pacific at PIMCO and BlackRock. Most recently Jeff was Managing Director, Head of Operations at BlackRock, and subsequently Head of Institutional Operations. Jeff has worked in Asia Pacific for 20 years and has 14 years of investment management experience.

Visit: Fullerton Fund Management




Managing $20 million to $3 billion. Investing $3 million to $300 million.
For Investment Managers, Hedge Funds, Boutique Funds, Private Equity, Venture Capital, Professional Investors, Family Offices, Private Bankers & Advisors, sign up today. Subscribe to Caproasia and receive the latest news, data, insights & reports, events & programs daily at 2 pm.

Join Events & Find Services
Join Investments, Private Wealth, Family Office events in Hong Kong, Singapore, Asia-wide. Find hard-to-find $3 million to $300 million financial & investment services at The Financial Centre | TFC. Find financial, investment, private wealth, family office, real estate, luxury investments, citizenship, law firms & more.  List hard-to-find financial & private wealth services.

Have a product launch? Promote a product or service? List your service at The Financial Centre | TFC. Join interviews & editorial and be featured on Caproasia.com or join Investments, Private Wealth, Family Office events. Contact us at [email protected] or [email protected]

Caproasia.com | The leading source of data, research, information & resource for financial professionals, investment managers, professional investors, family offices & advisors to institutions, billionaires, UHNWs & HNWs. Covering capital markets, investments and private wealth in Asia. How do you invest $3 million to $300 million? How do you manage $20 million to $3 billion of assets?



Quick Links


2021 Data Release
2020 List of Private Banks in Hong Kong
2020 List of Private Banks in Singapore
2020 Top 10 Largest Family Office
2020 Top 10 Largest Multi-Family Offices
2020 Report: Hong Kong Private Banks & Asset Mgmt - $4.49 Trillion
2020 Report: Singapore Asset Mgmt - $3.48 Trillion AUM


For Investors | Professionals | Executives
Latest data, reports, insights, news, events & programs
Everyday at 2 pm
Direct to your inbox
Save 2 to 8 hours per week. Organised for success

Register Below

For CEOs, Heads, Senior Management, Market Heads, Desk Heads, Financial Professionals, Investment Managers, Asset Managers, Fund Managers, Hedge Funds, Boutique Funds, Analysts, Advisors, Wealth Managers, Private Bankers, Family Offices, Investment Bankers, Private Equity, Institutional Investors, Professional Investors

Get Ahead in 60 Seconds. Join 10,000 +
Save 2 to 8 hours weekly. Organised for Success.

Sign Up / Register


    InvestorProfessionalFamily OfficeExecutive


    SubscriptionMembershipEvents


    Professional InvestorPrivate WealthFamily OfficePrivate BankingWealth ManagementInvestmentsAlternativesPrivate MarketsCapital MarketsESG & SICEO & EntrepreneursTax, Legal & RisksHNW & UHNWs Insights










    Web links may be disabled on mobile for security.
    Please click on desktop.










    Caproasia Users

    • Manage $20 million to $3 billion of assets
    • Invest $3 million to $300 million
    • Advise institutions, billionaires, UHNWs & HNWs

    Caproasia Platforms | 11,000 Investors & Advisors

    Monthly Roundtable & Networking

    Family Office Programs

    The 2024 Investment Day

    • March 2024 - Hong Kong
    • March 2024 - Singapore
    • June 2024 - Hong Kong
    • June 2024 - Singapore
    • Sept 2024 - Hong Kong
    • Sept 2024 - Singapore
    • Visit: The Investment Day | Register: Click here

    Caproasia Summits

    Contact Us

    For Enquiries, Membership
    [email protected], [email protected]

    For Listing, Subscription
    [email protected], [email protected]

    For Press Release, send to:
    [email protected]

    For Events & Webinars
    [email protected]

    For Media Kit, Advertising, Sponsorships, Partnerships
    [email protected]

    For Research, Data, Surveys, Reports
    [email protected]

    For General Enquiries
    [email protected]





    Caproasia | Driving the future of Asia
    a financial information technology co.
    since 2014




    Previous articleTop Headlines in the Last 7 Days (5th – 11th Dec 2016)
    Next articleKey Head in Edmond De Rothschild Leaves
    Caproasia.com covering capital markets, investments and private wealth in Asia. Our users manage, advise & invest $25 trillion assets in Asia