The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Foreign Exchange

Technology vendors eye FX client onboarding opportunity

Regulatory technology vendors are relishing the prospect of helping banks minimize FX client onboarding errors, but in a world where legacy systems remain commonplace, regtech is not always an easy sell.

fx-eye--780

Anti-money laundering (AML) and know-your-customer (KYC) regulations require financial institutions to carry out due diligence on their customers. Verifying the identity of these customers is a crucial step in this process and screening names against AML watchlists helps ensure that potential customers have not been associated with financial crimes.

Banks and other institutions don’t want to make the onboarding process too onerous, but relying on manual processes leaves them exposed to data entry errors. Client classification and appropriateness rules have also become more stringent – one of the most telling observations made when the FX derivatives mis-selling claims came to light was that brokers were often completely unaware of the distinction between retail and wholesale customers.

Remonda Kirketerp-Moller-160x186

Remonda Kirketerp-Moller, Muinmos 

Complex leveraged instruments such as forwards and options used for hedging have in the past been abused by sales teams chasing higher commission margins without necessarily putting the client first in terms of product suitability or risk appetite, notes Remonda Kirketerp-Moller, founder and CEO of Muinmos, which specializes in automated regulatory compliance.


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree