KYC & Onboarding Trends in Energy & Commodities 2024

Everything you need to know about compliance in energy and commodities.

This report unveils the findings from Fenergo’s first-of-its-kind research survey into risk and compliance, digitalization, and investment priorities at US-based energy and commodities firms.

“Commodity traders paid over $6 billion in fines in the last two years alone. Certainly, I think that’s going to get more challenging because of the spotlight that the Ukraine war and Russia’s shadow fleet has thrown on the sector.”

Alex Tame - Senior Channel Partner Manager, Risk Intelligence, LSEG

The energy and commodities sector is constantly evolving, with new regulations, market structures, and technologies emerging all the time. Sanctions in particular are increasing in both volume and complexity, compounding the compliance challenges this industry already faces around Know Your Counterparty (KYC) and due diligence processes.

Fenergo’s research reveals that nearly eight in ten (78%) US energy and commodities firms struggle to meet sanctions compliance obligations due to data challenges. For seven in ten (69%) firms, their cumbersome onboarding processes have even cost them trade relationships. Energy and commodities companies need to find efficiencies within their KYC and AML processes to effectively manage counterparty risk and meet revenue growth targets.

This report explores the key challenges facing US energy and commodities organizations and discusses potential solutions. Achieving a single view of the counterparty is key for energy and commodities organizations. Digitalization of processes, including the automation of many labor-intensive activities, streamlines onboarding and compliance reporting, helping reduce the time and resources required by organizations to effectively understand and mitigate counterparty risk.

In this report, Fenergo unveils and analyzes the results of our inaugural KYC and onboarding research survey:

• Which areas of risk are firms prioritizing for technology investment
• The main factors leading to abandonment and losses of trades and deals
• Which areas firms are spending the most of their compliance budgets on
• How much time, money, and resource allocation firms are spending on KYC and onboarding

Access the report now.

You can also see an expert panel from Chartis, LSEG, Deloitte, and Fenergo unpack the report findings in our webinar: Data to Dollars: Unveiling the Results of our Energy and Commodities Survey.