To be able to deal in derivatives with a new customer, counterparties must compile a customer information file on this client, including extensive information for regulatory purposes. Generally speaking the onboarding process that banks impose on their customers are also imposed on the banks themselves under banking regulations that have been developed over the last twenty years, at the initiative of the G20 in particular, in order to ensure:
greater transparency and traceability in financial markets
greater transaction security
greater protection and better information for investors
the fight against money laundering and the financing of terrorism
This article outlines some of the main features but is not intended to provide a comprehensive description of the onboarding process, which in any case differs from one counterparty to another.
