News & Blog

The Most Common Misconceptions about Global Corporate Registries

Insight
December 1, 2020

Complacency can be dangerous, especially when it comes to compliance.

Compliance and AML professionals face a difficult task. Not only must they source accurate data from an often confusing partner landscape, but they must also use that data in a way that helps their businesses stay compliant, avoid risk and deter would-be criminals.

For people with so much on their minds, it makes sense that a few details regarding global registry data often slip through the cracks. Common mistakes lead to common misconceptions, which hurt even educated customers who do not see the need to question best practices or information they have known for years.

Complacency can be dangerous, though, especially when it comes to compliance. Let us take a look at a few common misconceptions held within the industry.

What Compliance Professionals Need to Know about Corporate Registries

As with all things data, corporate registries can be tricky, even for people who have been working with them for a long time. Compliance professionals may not always appreciate the scope and complexity of what goes on behind the scenes, even if the final deliverables meet their needs.

Although corporate registries are simply sources of information at their core, these data wells are far from easy to access, use and navigate. While the data that each corporate registry offers are legally reliable, the complexity of accessing that data increases dramatically every time data is required from a new country. This is one of the primary reasons so much time is spent on public data collection, which research shows consume 40-50% of a compliance professional’s time.

In addition to the time wasted on manual data collection, not all corporate registries house the same information. Compliance professionals may be surprised, but not all data is the same, even when it appears to come from the same source or covers the same subject matter. All corporate registries have distinctly different data and formatting. Without proper care and experience, it is easy to mistake one format for another and end up with inaccurate information.

That is why we are here: to make the difficult problem simple. Compliance covers a wide range of disciplines, and data rarely reveals its secrets without a bit of help. Kyckr has worked for years to become the best provider of structured data services, and today we have relationships with over 180 corporate registries from across the world.

What MLROs and CIOs Should Know about Global Registries

Leaders and c-suite members who deal with compliance understand that compliance is much more than a checkbox exercise. True compliance guards against the negative social impact that crime causes to society as a whole and it protects organisations from catastrophic breaches, hefty fines from regulators, and bad public press while providing actionable insights for revenue generation. That said, MLROs and CIOs should still consider how the pace of a quickly changing compliance environment can lead to knowledge gaps.

Here are a few key tips on global registries for executives with compliance oversight responsibilities:

  • Be conscious of upcoming KYC regulation changes. Rules change quickly, and the lengths of time between changes are getting shorter. Regulators are catching on to inefficiencies in KYC and AML compliance, and soon, supranational organisations may begin to impose or call for stricter standards. Governments may take some time to catch up, but organisations should not depend on that buffer for leeway.
  • Review AML/CTF and other application value chains. Companies cannot protect weak spots they do not realise exist. Review value chains to identify potential opportunities for synergy. Given the recent multiplication of both data sources and regulatory needs, including recurrent electronic reporting, and on-going monitoring, vigilance on this point will only become more critical as time passes.
  • Assess the cost benefits of automating manual processes. Manual AML and KYC processes can lead to weak points and prevent companies from achieving their compliance goals. Assess the cost benefits of replacing these manual processes in favour of new technologies that enable automation to streamline compliance processes and reduce regulatory risks. The upfront costs may be higher, but the savings and protections are more than worth the investment.

KYC and AML professionals have to be savvy to be effective in their roles. As the regulatory landscape shifts to match pace with larger changes in finance and beyond, leaders and compliance officers must be ready to meet new challenges with complete, accurate and updated information and strategies.

Insight
December 1, 2020

Complacency can be dangerous, especially when it comes to compliance.

Compliance and AML professionals face a difficult task. Not only must they source accurate data from an often confusing partner landscape, but they must also use that data in a way that helps their businesses stay compliant, avoid risk and deter would-be criminals.

For people with so much on their minds, it makes sense that a few details regarding global registry data often slip through the cracks. Common mistakes lead to common misconceptions, which hurt even educated customers who do not see the need to question best practices or information they have known for years.

Complacency can be dangerous, though, especially when it comes to compliance. Let us take a look at a few common misconceptions held within the industry.

What Compliance Professionals Need to Know about Corporate Registries

As with all things data, corporate registries can be tricky, even for people who have been working with them for a long time. Compliance professionals may not always appreciate the scope and complexity of what goes on behind the scenes, even if the final deliverables meet their needs.

Although corporate registries are simply sources of information at their core, these data wells are far from easy to access, use and navigate. While the data that each corporate registry offers are legally reliable, the complexity of accessing that data increases dramatically every time data is required from a new country. This is one of the primary reasons so much time is spent on public data collection, which research shows consume 40-50% of a compliance professional’s time.

In addition to the time wasted on manual data collection, not all corporate registries house the same information. Compliance professionals may be surprised, but not all data is the same, even when it appears to come from the same source or covers the same subject matter. All corporate registries have distinctly different data and formatting. Without proper care and experience, it is easy to mistake one format for another and end up with inaccurate information.

That is why we are here: to make the difficult problem simple. Compliance covers a wide range of disciplines, and data rarely reveals its secrets without a bit of help. Kyckr has worked for years to become the best provider of structured data services, and today we have relationships with over 180 corporate registries from across the world.

What MLROs and CIOs Should Know about Global Registries

Leaders and c-suite members who deal with compliance understand that compliance is much more than a checkbox exercise. True compliance guards against the negative social impact that crime causes to society as a whole and it protects organisations from catastrophic breaches, hefty fines from regulators, and bad public press while providing actionable insights for revenue generation. That said, MLROs and CIOs should still consider how the pace of a quickly changing compliance environment can lead to knowledge gaps.

Here are a few key tips on global registries for executives with compliance oversight responsibilities:

  • Be conscious of upcoming KYC regulation changes. Rules change quickly, and the lengths of time between changes are getting shorter. Regulators are catching on to inefficiencies in KYC and AML compliance, and soon, supranational organisations may begin to impose or call for stricter standards. Governments may take some time to catch up, but organisations should not depend on that buffer for leeway.
  • Review AML/CTF and other application value chains. Companies cannot protect weak spots they do not realise exist. Review value chains to identify potential opportunities for synergy. Given the recent multiplication of both data sources and regulatory needs, including recurrent electronic reporting, and on-going monitoring, vigilance on this point will only become more critical as time passes.
  • Assess the cost benefits of automating manual processes. Manual AML and KYC processes can lead to weak points and prevent companies from achieving their compliance goals. Assess the cost benefits of replacing these manual processes in favour of new technologies that enable automation to streamline compliance processes and reduce regulatory risks. The upfront costs may be higher, but the savings and protections are more than worth the investment.

KYC and AML professionals have to be savvy to be effective in their roles. As the regulatory landscape shifts to match pace with larger changes in finance and beyond, leaders and compliance officers must be ready to meet new challenges with complete, accurate and updated information and strategies.

Build your Customer Due Diligence and KYC processes on a robust foundation with Kyckr.

Make data work smarter, not harder.

Request a Demo
Newsletter Sign Up
Book a Demo
Talk to us
LinkedIninfo@kyckr.com
23Q2_ALL_CONF_07.12_AFCSummit_BookAMeeting
23Q2_ALL_WEB_14.12_KYC_VS_KYB_SIGNUP_FORM
Webinar: Spotlight on KYC vs KYB - Why The Difference Is Increasingly Important For Verification
23Q2_ALL_WEB_17.11_Corporate_KYC_Landscape_ReplayRequest
23Q2_ALL_WEB_27.10_Corporate_KYC_Landscape_FINAL_FORM
Whitepaper: AML Bank Fines 2022 Mid-Year Report
Research Paper: The State of Customer Onboarding in Corporate Banking in Australia 2022
Registry Portal Pro
Registry Portal Basic
Registry Portal Essentials
Request API Key
Newsletter Signup
Whitepaper: AML Fines Report 2021
Ebook: The Future Of Financial Crime
Research Paper: Voice of the KYC Compliance Professional
Whitepaper: Corporate Onboarding: will it become a competitive differentiator for banks in a real-time world?
Research Paper: The State of Customer Onboarding in Corporate Banking
Whitepaper: Overcoming the Limitations of Company Registries to Enhance KYC Efficiency
Whitepaper: AML Bank Fines 2020 Report
Whitepaper: Impact of the European Union’s 5th AML Directive
Leverage cutting edge technology to automate customer onboarding
Moving from Periodic to Perpetual KYC
Unleash the power of primary source data & automate customer onboarding
Primary source data, the true foundation of regulatory compliance for Legal Firms
Primary-source data, the backbone of streamlined, “zero-touch” onboarding for Payment Providers
Spotlight on company registries in the wake of the FinCen Papers
Spotlight on US Company Registries
Spotlight on Ultimate Beneficial Ownership
Spotlight on APAC Company Registries
Spotlight on Company Registries in Offshore Jurisdictions
How can automation enhance your KYC and Onboarding Process?
Perpetual KYC – a myth or a must?
Spotlight on 2021 AML Fines
How to Future-Proof your AML/KYC processes with the help of RegTechs?
Webinar Replay: How to overcome the challenges associated with UBOs?
Spotlight On Entry Verification
Registry Portal Enterprise
AMLFines_ReplayRequest_FORM
Replay
Webinar Replay
Book A Demo