Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
New Year’s SALE: Up to 40% OFF InvestingPro+ CLAIM OFFER
U.S. regulator will recommend banks consider effects before de-risking
© Reuters. U.S. Comptroller of the Currency Thomas Curry looks on during the Reuters Financial Regulation Summit in Washington
By Joel Schectman
(Reuters) - A U.S. regulator said on Wednesday it would provide banks with more clarity on how to comply with anti-money laundering rules without simply shutting down relationships in riskier parts of the world.
The U.S. Office of the Comptroller of the Currency, which regulates large banks, will offer guidance on how banks evaluate foreign banking risks and make decisions on whether to shut down accounts, agency head Thomas Curry said.
The new guidance will include a recommendation that executives consider the negative effect of cutting off an entire group of customers, or an entire region from banking.
"The global financial system cannot be paralyzed by risk," Curry said at a Las Vegas conference for anti-money laundering specialists.
U.S. officials are increasingly concerned that heightened money laundering enforcement has pushed banks to withdraw from regions facing terrorism and drug trafficking.
That policy known as "de-risking" could "lead to entire regions being cut off from the positive effects of modern financial systems and broader financial inclusion," Curry said. "This is not the solution."
Banking executives have complained that regulators are intentionally ambiguous on how much due diligence is required to vet customers in regions seen as riskier. In the absence of that clarity, executives say they must err on the side of caution and shut down lines of business and accounts that pose questions.
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.