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2016-05-09

Thomson Reuters Corporation : Thomson Reuters 2016 Know Your Customer Surveys Reveal Escalating Costs and Complexity

Parallel surveys show differing perspectives of financial institutions and
their corporate customers
on the effect of

financial

firm

s' spend of up to $500 annually on KYC

globally

LONDON/NEW YORK, May 9
, 2016 -
The lack of sufficient people resources and the volume of regulatory change
are top concerns among nearly 800 financial institutions who responded to an
authoritative Thomson Reuters survey on the impact of global changes in Know
Your Customer (KYC) regulation, while a parallel survey of their corporate
customers found that 89 percent had not had a good KYC experience, and 13
percent had changed their financial institution relationship as a result.

The global surveys revealed a single clear message: the costs and complexity
of KYC are rising, and are having a negative impact on their businesses.
While financial firms' average costs to meet their obligations are $60
million, some are spending up to $500 million on compliance with KYC and
Customer Due Diligence (CDD).

Both financial firms and their corporate customers agreed that lengthening KYC
procedures are putting more strain on on-boarding processes and client
relationships, with the time to bring a new client on board - up 22 percent
from last year -- and anticipated to increase a further 18 percent over the
next year. Furthermore, 30 percent of corporate respondents reported that
times to on-board are more than two months and of which 10 percent claim an
on-boarding time in excess of four months and that they have, on average,
eight different bank interactions with the bank during the process.

KYC continues to weigh heavily on financial institutions, with the report
citing that a lack of appropriately skilled people is their biggest concern
and half of all respondents stated that the number of employees working on
KYC had increased over the past year. A majority also agreed that ongoing
regulatory change is another top KYC challenge they face: 87 percent of banks
and 75 percent of investment managers believe regulatory and legislative
change is the most influential factor for their KYC processes.

Ever-changing regulations pose KYC challenges not only for financial
institutions but also for their customers. Nearly 70 percent of financial
institutions shared that they believe that all or most of their clients are
proactive in reporting material changes in KYC status such as beneficial
ownership change. However, approximately 30 percent of the corporate
respondents reported that they keep their financial institutions up to date
proactively.

A significant 69 percent of banks who responded said that the level of
engagement with their organization by regulators had increased for KYC and
CDD. Among the C-suite executives at financial organizations who responded,
70 percent said they had been spending more time and attention to KYC changes
over the past 12 months.

"A positive and efficient client on-boarding experience is a differentiator
for those financial institutions able to deliver it to their clients," said
Steve Pulley, global managing director - Risk Managed Services at Thomson
Reuters. "Our survey results highlight the disconnect in perception between
banks and their corporate clients, demonstrating that most financial
institutions have further to travel on this journey. Industry managed
services in the KYC and client on-boarding space, such as Thomson Reuters Org
ID, can play a key role in improving the client experience of being
on-boarded and refreshed by significantly reducing the number of interactions
they have with their banks and increasing the consistency of their
experience, without compromising on compliance."

The surveys -- administered at the outset of 2016 to an evenly proportioned
set of respondents in leading regional markets in Europe, the U.S., South
Africa and Asia-Pacific -- involved 772 respondents at financial institutions
as well as 822 respondents at corporations, all engaged within their
organizations in KYC-related compliance activities, encompassing processing
of and adherence to client on-boarding and CDD.

For further information, or a copy of the Thomson Reuters 2016 KYC Challenges
Surveys, please go to:bit.ly/2700bha(for financial institutions)
andtmsnrt.rs/1Ts3t2E(for corporations).

Thomson Reuters Org ID, which recently celebrated its second anniversary, is a
global solution developed for banks, investment managers and corporations to
simplify and streamline CDD and the ongoing maintenance of KYC records - in
line with ever-changing regulatory demands. Org ID has processed 125,000 KYC
entity profiles, all of them fully validated and screened, with continuous
monitoring and dynamic refresh offered as part of the service's end-to-end
solution.

The financial services industry has bestowed accolades upon Thomson Reuters
Org ID; it recently received theData Management Review Award 2015
for "Best KYC&Client On-Boarding Solution" - the second straight year Org ID
has earned this recognition. Last October, Org ID also won the "Best Managed/
Support Service Provider of the Year" at theOperational Risk&Regulation
Awards 2015 ceremony in New York. Earlier last year, peers voting for the
2015FTF News
Technology Innovation Awards selected Org ID to receive twoFTF
Excellence Awards -- in the categories of 'Best Operational Risk Management
Solution' and 'Best AML/Anti-Fraud Solution'.

For more information about Thomson Reuters Org ID, go to:
https://risk.thomsonreuters.com/products/thomson-reuters-org-id-kyc-mana...

Thomson Reuters

Thomson Reuters is the world's leading source of news and information for
professional markets. Our customers rely on us to deliver the intelligence,
technology and expertise they need to find trusted answers. The business has
operated in more than 100 countries for more than 100 years. Thomson Reuters
shares are listed on the Toronto and New York Stock Exchanges (symbol: TRI).
For more information, visitwww.thomsonreuters.com.

-----------------------------------------------------------
| CONTACTS |
| Mark D. Harrop |
| |
|Public Relations Manager, Financial&Risk |
|Office +1 646-223-7803 |
|Mobile +1 347-803-5575 |
|mark.harrop@thomsonreuters.com |
| |
| |
| |
| |
|Brian Mairs |
|Global Head of External Communications, Financial&Risk |
|Office +44 20 7542 7866 |
|Mobile +4407799 477998 |
|brian.mairs@thomsonreuters.com |
| |
| |
| |
| |
|Lemuel Brewster |
|Senior Public Relations Director, Financial&Risk |
|Office +1 646-223-5147 |
|Mobile +1 917-805-1089 |
|lemuel.brewster@thomsonreuters.com |
| |
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The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Thomson Reuters Corporation via Globenewswire

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