The European Banking Authority (EBA) has published a call for input comprising eleven questions to understand the impact of de-risking on financial institutions and customers.
The EBA has collected evidence that:
– some banks have had their Correspondent Banking Relationships (CBRs) terminated because of their risk profile, e.g. causing closure of customers’ accounts to mitigate these risks;
– certain categories of customers or businesses that are associated with higher ML/TF risks have experienced difficulties in accessing banking services;
– some segments of the financial sector have seen their access to banking facilities restricted.
Deadline is 11 September 2020. The feedback gathered will feed into the EBA’s next Opinion (Q1 2021) on the risks of money laundering and terrorist financing (ML/TF) affecting the EU’s financial sector. It may also inform other EBA policy outputs.