A conflict of interest occurs when an individual or organization has competing interests or loyalties that could potentially interfere with their ability to make impartial decisions. In a business or regulatory context, this typically happens when a person’s personal, financial, or professional interests conflict with their duty to act in the best interest of their employer, client or other stakeholders.

Identifying and managing conflicts of interest in Know Your Customer (KYC) and compliance processes prevents misconduct that could expose organizations to legal or reputational risks.

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