KYC Utility (Shared KYC)

A KYC Utility is a shared service or consortium that collects, verifies, and distributes customer due-diligence profilesto participating institutions. By centralizing document capture, screenings, and ongoing updates, utilities reduce duplicate effort for customers and compliance teams, especially in corporate banking and correspondent networks. Participation agreements define data standards, governance, liability, and refresh cadences. Utilities may integrate registry data, LEIs, sanctions/PEP sources, and adverse media with attestations from customers. Key challenges include coverage, data quality, consent management, and aligning differing risk appetites. When governed well, utilities accelerate onboarding, lower costs, and improve consistency; institutions still remain accountable for final risk decisions and any required EDD tailoring.