FMSB publishes onboarding standard

The Financial Markets Standards Board has published a draft standard which would apply to firms onboarding clients or reviewing client files for UK AML and KYC compliance. The standard would apply to FMSB members in all situations where UK AML requirements apply, and to all client industries, although it focuses on financial institutions.

Part of the aim of the standards is to improve client experience, and to minimise the extent to which an institution gets asked to provide different information to different providers and counterparties – but FMSB is clear that it in no way prevents firms from taking the required risk-based approach.

The standard comprises a set of core principles that set out how firms choose data points and evidence when onboarding clients, and a set of annexes which include guidance on universally acceptable sources of information.

FSMB asks for comment by 3 May.