On 15 June 2020, the European Banking Authority (EBA) issued a call for input from various market participants on “de-risking”, that is, measures aimed at reducing money-laundering risks. De-risking means that financial providers either entirely refuse to provide services to certain groups of customers or discontinue the provision of services to such customers since they perceive the risk of money laundering involved as too high. In particular, the de-risking phenomenon is characterised by not assessing the circumstances of customers on an individual basis, but rather as a customer group. Examples of parties subject to de-risking in EU countries include payment service providers, NGOs and institutions engaged in correspondent banking.
In order to understand the scale of the phenomenon and its impacts, the EBA welcomes responses, in addition to the financial sector, from respondents which have experienced difficulties in establishing a customer relationship or the restriction or discontinuation of services in their own activities, or have been otherwise affected by it.
The consultation period runs until 11 September 2020.
More detailed instructions on submitting a contribution are included in the call for input at the EBA website.
For further information, please contact:
- Pekka Vasara, Head of Division, pekka.vasara(at)fiva.fi
- Jonna Ekström, Senior Legal Advisor, jonna.ekstrom(at)fiva.fi