What multinational corporate supply chains can learn about supplier due diligence from the banking industry

What multinational corporate supply chains can learn about supplier due diligence from the banking industry

Here, Dermot Corrigan of smartKYC draws parallels between Know Your Customer (KYC) practices in the banking industry and supplier due diligence in multinational corporations (MNCs). He highlights the transformation KYC has undergone, driven by regulatory changes, technological advancements, and evolving risk landscapes, and identifies lessons MNCs can learn from this evolution including:

  • Rigorous due diligence

  • Taking a risk-based approach

  • The importance of ongoing monitoring

  • The implications of regulatory compliance

  • The transformative role of technology

  • The benefits of collaboration with other businesses, industry bodies and non-governmental organisations

Overall, Corrigan suggests that MNCs can enhance the integrity of their supply chains by adopting rigorous due diligence, risk-based approaches, ongoing monitoring, compliance focus, technological adoption, and collaborative practices. These measures not only protect MNCs from risks but also enhance their reputation and contribute to their long-term success.