CanDeal Group, an operator of Canadian market and infrastructure services, has teamed up with five of Canada’s biggest local banks “to deliver a comprehensive, centralized Know Your Client (KYC) solution to the Capital Markets Industry.”
The collaboration mutualizes many of the costs and efforts of “complying with KYC requirements and The Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and delivers [considerable] operational efficiencies.”
The move by The Bank of Montreal, The Bank of Nova Scotia (Scotiabank), The Canadian Imperial Bank of Commerce, The National Bank of Canada and The Royal Bank of Canada creates “a common data and regulatory experience for the industry, building widespread trust in the data for use in risk assessments, as well as streamlining KYC compliance for clients.”
Jayson Horner, Co-Founder, President and CEO of CanDeal Group, said:
“We are proud to work with the pioneering banks that have supported this initiative. This is an industry collaboration at its finest. It’s good for Canada; it’s good for regulation; and it’s good for all the banks and their clients.”
Loretta Marcoccia, EVP and Chief Operating Officer of Global Banking and Markets at Scotiabank, noted:
“Collectively we see this initiative as an opportunity to raise the standard for KYC compliance. A strong compliance program not only meets regulatory expectations, it also ensures that we protect our clients and our business.”
Denis Girouard, EVP, Head of Financial Markets and Member of the Office of the President at National Bank, said:
“Creating a superior client experience has been a key driver for all participating banks.”
CanDeal Innovations, a division of CanDeal Group, “first conceived of this initiative in 2020 and is delighted to have completed multiple phases, with completion of the technology infrastructure expected later this year.”
Tim Cain, President of CanDeal Innovations, stated:
“We look at the biggest challenges facing the markets today and set out to solve them. The need for KYC compliance is not going away, but this collaboration ensures that it will be far more efficient for participants.”
CanDeal Group was formed in 2001 and claims to be “a leading provider of financial markets, data services and infrastructure support for the domestic market.”
As noted in the announcement, CanDeal is a provider of electronic marketplaces and data services “for Canadian dollar debt securities and derivatives.”
CanDeal Data & Analytics (CanDeal DNA) claims to provide “the most comprehensive and accurate dealer-sourced pricing to better monitor and understand fixed income and derivatives market exposure.”
Its Markets division “provides access to a deep pool of liquidity for Canadian government, agency, provincial and corporate bonds, as well as money market instruments and interest rate swaps.”
CanDeal Markets also “delivers Canadian institutional investors with electronic access to liquidity in non-Canadian debt and derivative marketplaces.”
CanDeal Solutions “delivers pricing and analytics services that support business, trading, and technology needs for participants in the Canadian market.”
CanDeal’s stakeholders “include BMO Nesbitt Burns Inc., CIBC World Markets, National Bank Financial Inc., RBC Capital Markets, Scotia Capital, TD Securities, and TMX Group.”