EBA Expert Group on KYC-related Topics
Regulatory and market requirements are key drivers in “Know Your Customer” (KYC) processes. In recent years, various industry standards have been created with a focus on technical requirements, but also on agreeing and implementing concrete market practices. However, both corporate customers and banks are still faced with a diversity of procedures, data definitions, guidelines and standards, which is detrimental to fully digitised and harmonised KYC processes. In a pan-European set-up, the multitude and the divergencies between several sets of requirements hamper efficient processes for all parties involved. Against this background, the EBA created the Expert Group on KYC-related Topics (KYCEG) in February 2021 as a pan-European harmonisation effort to contribute to more uniform and digital-friendly processes in the field of corporate customer-to-bank KYC.
Objective
The objective of the KYCEG is to support the discussions on a joint interpretation of regulatory KYC requirements at a pan-European level. Using a phased approach, the group has been developing a proposal for a pan-European common baseline classification standard for KYC data and documents in support of an implementation at the corporate-to-bank level. As part of this work, the Expert Group solicits views from relevant actors in the field of corporate-to-bank KYC data exchange platforms, and also seeks an information exchange with relevant market regulators.
Background
The Euro Banking Association has traditionally accompanied major European regulatory initiatives through the initiation of dedicated industry practitioners’ bodies. These groups analyse and provide guidance on particular topics with the aim to address, at industry-wide level, practical and compliance issues related to implementation, especially with a focus on pan-European transparency and guidance for PSPs. In line with this approach, the Association created the EBA Expert Group on KYC-related Topics (“KYCEG”) to support the works around a harmonised pan-European classification standard for KYC data in the field of corporate-to-bank KYC.
Terms of Reference for Expert Group on KYC-related Topics
Publications
EBA CBCS – Common Baseline Classification Standard for Corporate-to-Bank KYC in low-risk situations, version 2.0 (February 2023)
Created and promoted by practitioners, this classification standard consists of a harmonised set of datapoints for a standard corporate-to-bank KYC process in low-risk situations. It is aimed at being used at a pan-European level and at supporting a uniform customer experience across Europe.
EBA CBCS – Data Verification for Corporate-to-Bank KYC in low-risk situations (February 2023)
This classification standard proposes a harmonised approach to data verification for a standard corporate-to-bank KYC process in low-risk situations. It was created and promoted by practitioners to be used at a pan-European level and facilitate a uniform customer experience across Europe.