EBI Publications

relationships with clients, especially those dealing with correspondent banking, rather than applying due diligence in order to avoid potential risks. Following de- risking measures, banks across the world have been closing the accounts of specific sectors such as money transfer companies, charities organizations, non- governmental organizations, startups and MSMEs, financial technology companies and foreign embassies. In addition to a contraction of correspondent banking relationship. De-risking in the financial sector Financial Infos Issue (03) “De-risking” refers to financial institutions terminating or restricting the accounts of clients perceived as high risk for money laundering or terrorist financing, namely money service businesses (MSBs), nonprofit organizations (NPOs), correspondent banks, and foreign embassies, which can further isolate communities from the global financial system. Other studies, refer to the term of de-risking as the phenomenon of terminating or restricting business