Money-laundering scandals spark new risk retrenchment
Euromoney, is part of the Delinian Group, Delinian Limited, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2024
Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement
Opinion

Money-laundering scandals spark new risk retrenchment

As Europe’s financial conduct authorities get tougher, banks will be even less likely to support trade between the EU and states that are small and poor.

don_banner_column-780



Ever since the 2008 financial crisis, US financial misconduct fines have led the world.

However, defenders of Europe’s more collegiate approach to tackling banks’ money-laundering shortcomings say US banks also lead the world for de-risking, shunning some of the globe’s poorest countries from access to the dollar system.

Now a spate of money-laundering scandals is hardening the determination of European regulators to prove they are just as tough as their American equivalents.

And it will have the same effect of turning banks further away from fragile nations, and even charities in their home markets, if the profit is not big enough.

“I’m not risking my licence for a correspondent banking relationship that brings €100,000 in fees,” as one western European bank chief executive tells me.


AML-Correspondent-banking-declines-per-FSB-780.jpg

Source: Financial Stability Board



HSBC holds an indication of what is coming. It withdrew from about 20 countries and 100 business lines under Stuart Gulliver’s leadership in the early and mid-2010s, partly because of money-laundering risks, after a $1.3








Gift this article