BE YOND K YC UTILITIES August 2019 Timothy Lyman, Louis de Koker, Chrissy Martin Meier, and Mehmet Kerse Collaborative Customer Due Diligence for Financial Inclusion

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. By pooling resources, these collaborative approaches have the potential to lower CDD costs and increase the effectiveness of anti-money laundering and combating the financing of terrorism measures, making it more feasible for FSPs to serve low-income customers with limited financial histories and other excluded groups. CGAP has developed a typology to help policy makers, regulators, and FSPs make sense of the expanding range of collaborative approaches to CDD and evaluate their likely impact on financial inclusion.