EBA issued a call for input to understand the scale and drivers of "de-risking" by the financial institutions in EU and its impact on customers. To manage customer profiles associated with higher money laundering and terrorist financing risks, financial institutions may decide not to service a customer or a category of customers. This is referred to as de-risking and affects both financial institutions and its users. This call for input is a part of the EBA work to lead, coordinate, and monitor the anti-money laundering (AML) and combating financing of terrorism (CFT) efforts in the financial sector in EU. This call for input, which runs until September 11, 2020, is of interest to stakeholders across the financial sector.
De-risking affects particular sectors and customers across EU, such as banks engaged in correspondent banking relationships and payment institutions. A variety of institutions and customers are affected by de-risking and the exposure of member states to this phenomenon also varies. Therefore, EBA is reaching out to stakeholders across the financial sector and its users to hear from their experiences. Responses to this call for input will feed into the next opinion of EBA on the money laundering and terrorist financing risks in the financial sector and may also inform other policy outputs of EBA. This opinion, which EBA is mandated to issue under the EU Directive 2015/849, will be published in the first quarter of 2021.
Keywords: Europe, EU, Banking, AML/CFT, ML/TF, Call for Input, EBA
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