Back to top

Image: Bigstock

Moody's (MCO) Expands KYC Capabilities Further, Buys Bogard

Read MoreHide Full Article

Moody’s (MCO - Free Report) has acquired Bogard AB, a provider of data and information on politically exposed persons (PEPs) across the Nordic region. The deal further strengthens the company’s capability to help clients perform Know Your Customer (KYC) screening and research to address financial crimes.

The financial terms of the deal were not disclosed. Moody’s funded the transaction from cash in hand. It will have no material impact on the company’s 2021 results.

Based in Stockholm, Sweden, Bogard covers more than 17,000 PEPs, close associates, and relatives in Sweden, Norway, Denmark, and Finland. The firm collects, refines, and updates information by using several sources including tax authorities, business and real estate registries, and other directories in the region.

Thus, for Moody’s, which will integrate Bogard with its KYC business within Moody’s Analytics, the deal further deepens its presence in the Nordic region and adds to the existing integrated risk assessment capabilities to address financial crimes. The company will combine Bogard’s data with its current PEP, sanction, and adverse media data.

Moody’s noted that the transaction complements its earlier investments in KYC and anti-money laundering capabilities. It also expands Moody’s Orbis company database and Grid database of adverse news, sanctions, and PEPs.

Eric Almbladh, chairman of Bogard, stated “Integrating Bogard’s existing delivery channels with Moody’s Analytics offerings creates opportunities for unique KYC solutions in the Nordic market.”

Keith Berry, General Manager of Moody’s KYC business unit, said, “Access to accurate, up-to-date information on politically exposed persons is vital for banks, corporations, and other market participants seeking to prevent money laundering and other forms of corruption.”

Similar to other global financial firms like JPMorgan (JPM - Free Report) , Goldman Sachs (GS - Free Report) , and Morgan Stanley (MS - Free Report) , Moody’s is growing through strategic acquisitions. Over the years, these transactions have provided the company with increased scale and cross-selling opportunities across products and vertical markets.

Also, such transactions are expected to keep helping the company diversify its revenues and be accretive to earnings. Moody's will continue to pursue opportunistic deals that are strategic fits and will complement its existing operations.

Published in