Digitalization And The Challenge Of KYC For Financial Institutions

Procedures of due diligence are an essential part of compliance programs. As stated in the French Anti-corruption Agency recommendations (FAA): "If they fail to conduct due diligence with regard to the integrity of the third parties – including customers – that they deal with, organizations may find themselves more or less directly implicated in corruption." The due diligence recommended by the FAA is distinct from the customer due diligence required of entities defined by the French Monetary and Financial Code relating to the fight against money laundering and terrorist financing (Articles L.561-1 et seq. of the Monetary and Financial Code which transpose the EU 2015/849 Directive).