By Elizabeth Hearst for AMLi
A number of credit institutions have told the European Banking Authority (EBA) they suffered ‘reputational damage’ when they terminated correspondent banking relationships due to money laundering concerns.
In its latest report on the scale and impact of de-risking in the EU, the EBA told how the lenders said some de-risking decisions were “based on certain characteristics” such as operating in high-risk jurisdictions or FATF grey-listed countries – which was “irrespective of the bank’s individual AML/CFT efforts”.
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