Global banks HSBC and Morgan Stanley will co-operate with the two groups on the design of the service, with a strategy to reduce banks’ costs and enhance compliance.
The banks are also in discussion with Depository Trust and Clearing Corporation, Broadridge Financial, Swift and Lysis Financial, reported The Financial Times.
The mounting stringent regulatory pressure has forced bankers to keep a tab on the illegal transactions, including money laundering, sanction breaches and terrorist financing, otherwise face huge penalty, as the news agency added.
The service is intended to enable the industry to streamline operations, reduce costs and enhance compliance through better data management and quality.
By centralising non-proprietary processes for onboarding new clients, managing client reference data, and remediating existing client accounts to new standards, this service will provide faster initiation of trading relationships with new clients.
