L Burke Files discusses the idea of centralisation in relation to due diligence, which was central to a publication by the Basel Committee on Banking Supervision - October 2001 on Customer Due Diligence for Banks.
De-centralised due diligence makes all the sense in the world. Those closest to the risks of operation are making informed choices. But it cannot just be done and walked away from. The information must still be gathered and centralised, responsible management must be sought, trained and properly incentivised. Oversight must be as keen as the selection and training, remembering all the time that these managers must be left free to choose, but also to be held accountable.
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