Why ESG should be part of a Financial Institution's Customer Due Diligence process
Customer Due Diligence (“CDD”) is a crucial element of a company’s compliance framework and an essential tool to manage financial crime and money laundering risks within the business operations of a financial institution (“FI”). However, as the regulatory landscape continues to evolve and issues related to climate change, human rights and social responsibility gain materiality, FIs are under pressure to expand their view of risks posed by Environmental, Social and Governance (“ESG”) factors when assessing their current and prospective customer base.
This article aims to provide a perspective on how embedding ESG risk factors into existing Know Your Customer (“KYC”) procedures can build a more comprehensive customer risk assessment strategy.
Read our report and find out
- Why should Financial Institution Compliance and Risk professionals care about ESG?
- How to broaden the scope of Customer Due Diligence?
- What are the key considerations for a successful ESG risk assessment?
- What are the good practices and recommendations?
