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Sunday, 26 March 2017

De-risking takes toll on GCC institutions’ access to global banking system | GulfNews.com

De-risking takes toll on GCC institutions’ access to global banking system | GulfNews.com:

"Restrictions imposed by global financial institutions on smaller regional and local counterparts as part of reducing risks associated with anti-money laundering (AML) and combating financing of terrorism (CFT) are causing significant business losses to regional banks and money transfer companies. Global financial institutions are increasingly terminating or restricting correspondent banking relationships with remittance companies and smaller local banks in many regions of the world — a practice that is called “de-risking.” De-risking has been rampant in regions that are generally perceived to be high risk. Bankers say GCC region is perceived as ‘high risk’ because of the volatile political situation prevailing in the neighbouring countries and regions."



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