From "pen friendship" to "online dating": Account management in transition

The first symposium of the association of German Treasurer e.V. in 2019 took place on 9 April 2019 in the airport terminal of Düsseldorf. Almost 100 members gathered at the DUS conference Centre to discuss bank account management.

The contents of KYC and e-BAM were examined from the different perspectives of corporates, banks, system providers and supervisory authorities.

One and a half year ago, a working group was formed consisting of 20 representatives from companies, banks and system providers with the aim of developing a KYC information package in order to relieve companies in their day-to-day business.

A key message was that KYC is a risk-based process and not a rule-based process. KYC is comparable to a credit process: "Here, too, the banks' assessments can be different”.

The e-BAM working group presented the existing possibilities for the electronic BAM (Bank Account Management) process and promoted the idea of pushing the process through all counterparts.

An example of how the Bank Account Management process can already be implemented now was presented by a corporate. Here it was recognized that KYC is not e-Bam, but it belongs together. The corporate's goal is to coordinate a KYC catalogue with all its banks that fully covers the requirements of each bank for opening an account.

In a lively presentation, a speaker from the Federal Administration Office gave insights into the functions of the eID procedure in relation to the ID card (passport). From this, starting points for the KYC and e-Bam processes were derived, which opened new perspectives for the audience.

As a concluding presentation, a bank representative tried - with success - to "square the circle or harmonise KYC". The presentation made it clear that the complaints that treasurers have had about their banks' handling of know-your-customer requirements for years are still relevant. It was pointed out that the regulatory pressure on banks to combat money laundering and other financial crimes is high. However, the participants do not want to accept this as their sole excuse. For example, one treasurer criticised a drive for self-preservation on the part of the banks' strongly grown compliance departments: "They have no incentive to rationalise their own workplace through more transparency or standardisation”.

In a concluding panel discussion, the system providers stated that in everyday working life the possibilities of system-side support of the KYC process, primarily in the e-Bam process, have not yet been implemented, due to the fact that the corresponding formats are not yet supported by the banks and, on the other hand, the companies do not (cannot) provide the necessary data.

Overall it was an exciting day which, according to the feedback of the participants, generated new ideas for the day-to-day business and could also be used for the exchange of information and experience, and for personal networking.

VDT

Articles


Photo from From Bitcoin to Central Bank Digital Currency (CBDC)

From Bitcoin to Central Bank Digital Currency (CBDC)

In recent months, we have seen the first steps of concerted moves towards CBDCs. This change of attitude is welcome as it complements other private and public initiatives in the world of payments which is innovating at a greater pace than ever.

Read
Photo from Stronger FX Hedging Strategies: a Pandemic Game-changer

Stronger FX Hedging Strategies: a Pandemic Game-changer

As the pandemic continues to throw markets into confusion, forcing corporates to battle against unprecedented volatility, treasury functions have an opportunity, albeit uninvited, to prove their strategic value – especially in relation to FX risk management.

Read
Photo from General Trends in TMS Solutions

General Trends in TMS Solutions

TMS’s have evolved over time and especially in the last couple of years with a huge leap in technologies. Treasurers are investigating how TMS can help in further modernising the finance function in the coming years.

Read
Photo from A Multidisciplinary Approach to Preventing Payment Fraud

A Multidisciplinary Approach to Preventing Payment Fraud

An escalation in fraud and cybercrime activities has been observed in recent months, as cyber attackers have been able to make use of the weaknesses caused by the current health crisis.

Read
Photo from Return on Purpose

Return on Purpose

During the pandemic we have increasingly heard how important it is that companies consider their corporate purpose. Typically, this results in a series of nebulous and hard to define concepts, created by marketing and consultancy firms. Return on Purpose looks at a variety of activities that a company undertakes and identifies individual RoIs for each of them to come up with an overall holistic view.

Read