EBI Publications

laundering and terrorist financing are essential for securing a more transparent and stable international financial system, it is important to remind banks management to avoid closing customers’ accounts and terminating business relationships with them continuously, as such procedures only are not sufficient to support de- risking. Therefore, de-risking phenomenon can manifest itself in a number of ways including: - Banks’ concentration on specific categories of customers whose activities are suspicious for example: money transfer operators/remittance providers. Given the role these sectors play in supporting developing economies, de- risking could be having a significant socio-economic impact and may contradict with financial inclusion purpose. De-risking have various reasons, such as concerns about profitability, or reputational risk. This process has been attributed to the increasing overall cost of complying with regulatory requirements related to anti- money laundering/combating financing of terrorism (AML/CFT). Many international organizations and institutions are showing great interest today in de-risking, several organizations often try to find ways to prevent and discourage excessive de- risking. Although effective action against money

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