FMSB publishes final client onboarding standard

The Financial Markets Standards Board (FMSB) has published its final Standard for Client Onboarding: Documentation and Processes.

The Standard has been drafted to allow onboarding firms to continue to fully apply the UK’s Risk Based Approach to KYC and provides more guidance for the practical implementation of the MLRs. The Standard is structured in two parts:

• Core Principles – relating to how onboarding firms choose the required data points and source relevant evidence in the process of client onboarding; and
• Annexes – including the Documentation Requirements, which consist of a list of data points identified by participating firms, universally acceptable sources, and commonly available documents which can populate and evidence these data points to level of credibility.

The Standard does not impact onboarding firms’ risk assessment of a client or third parties, nor is it intended to alter their tolerance as to who they will or will not take on as client. The Documentation Requirements are intended only to apply for baseline CDD, and do not consider additional requirements such as the application of enhanced CDD.