Research & Analysis

Beyond KYC Utilities: Collaborative Customer Due Diligence

The private and public sectors are increasingly leveraging new technologies to deliver collaborative approaches for financial service providers (FSPs) to meet customer due diligence (CDD) requirements. These include sharing data and elements of compliance functions on a level that was previously unthinkable. By pooling resources, these collaborative approaches have the potential to lower CDD costs and increase the effectiveness of anti-money laundering and counter financing of terrorism (AML/CFT) measures. This in turn would make it more feasible for FSPs to serve low-income customers with limited financial histories or those who are members of higher crime risk groups, such as those living in or fleeing conflict.

CGAP has developed a typology to help policy makers and financial service providers evaluate different collaborative approaches of customer due diligence.

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Blog Series

Despite leading global bodies recognizing that financial exclusion can undermine efforts to fight money laundering and terrorism financing, the high cost of complying with their requirements paradoxically makes it harder for financial services providers (FSPs) to reach