Capgemini-双重威胁，双重防御-为什么ESG是银行有效合规的关键（英）

Dual threat, dual defense1Why ESG is the key to effective bank complianceDual threatdual defenseDual threat, dual defense2Today, many financial institutions track environmental, social, and governance (ESG) factors to better understand the organizations they do business with. They do so for a variety of reasons—to reduce risk from issues such as climate change and scandal; to gauge the potential financial performance of client or supplier companies; to guide customers looking for sustainable finance or responsible investments; to manage their own carbon footprint; and to comply with increasing ESG-related regulatory requirements. At the same time, institutions put a great deal of effort into financial crime compliance (FCC), and meeting the standards and regulations established by the U.S Treasury Department’s Financial Crime Enforcement Network (FinCEN) and other governmental bodies. These FCC operations aim to reduce money laundering and protect the financial system from the flow of illicit funds. A synergistic approach to safer sustainable bankingBoth ESG and FCC screening are important for all financial institutions. These two critical activities have traditionally operated as separate domains, each in its own silo pursuing its own mission. But there is an untapped potential to leverage ESG considerations in FCC, using technology to combine the strengths of both domains. By doing so, institutions can significantly enhance their efforts to proactively uncover and combat illicit activities and reduce their own risk of being associated with crime and running afoul of regulators. There’s a consensus that ESG considerations should be incorporated into the client prospect evaluation stage. This ensures that reputational risk is addressed upfront, prior to onboarding and KYC processes.Business Executive, major UK bankDual threat, dual defense3The link between ESG and FCCIn their FCC operations, financial institutions focus on Know Your Customer (KYC) efforts that aim to understand the customer’s business and any associated criminal risks. KYC looks largely at financial transactions, money flows, and periodic negative screenings to identify potential problems. On the other hand, ESG screening looks at a range of news reports and publicly available information to develop insights into a corporation or its associated parties’ commitment to ethical behavior and responsible practices.Although they focus on different domains, these areas are closely related since bad ESG behavior can involve predicate crimes that lead to money laundering charges for the responsible parties. For example, companies using illegal mining or logging practices that lead to environmental harm will want to hide the money earned in their operations. So too will those involved in unethical social behaviors, such as human trafficking or the use of child labor. In addition, companies with weak governance structures are more susceptible to bribery and corruption, which are associated