The Treasury Department issued a strategy on de-risking, which occurs when financial institutions terminate or restrict business relationships indiscriminately with broad categories of customers rather than analyzing and managing the risk of those customers.
Treasury calls for response to de-risking
April 26, 2023 / By ICBA
The Treasury Department issued a strategy on de-risking, which occurs when financial institutions terminate or restrict business relationships indiscriminately with broad categories of customers rather than analyzing and managing the risk of those customers.
The Treasury Department issued a strategy on de-risking, which occurs when financial institutions terminate or restrict business relationships indiscriminately with broad categories of customers rather than analyzing and managing the risk of those customers.
Details: Required by the Anti-Money Laundering Act of 2020, the 2023 De-risking Strategy says:
De-risking drives financial activity out of the regulated financial system, hampering remittances and preventing access to the financial system.
The cost of implementing anti-money laundering compliance measures is a key factor in financial institutions’ de-risking decisions.
The federal government should consider clarifying and revising Bank Secrecy Act regulations and guidance.
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