The instruments clarify that compliance with anti-money and countering terrorist financing (AML/CTF) obligations in EU law does not require financial institutions to refuse, or terminate, business relationships with entire categories of customers that they consider presenting a higher ML/TF risk.
De-risking refers to decisions taken by financial institutions not to provide services to customers in certain risk categories. This can leave customers without access to the financial system. De-risking can be a legitimate risk management tool in some cases, but it can also be a sign of ineffective ML/TF risk management.
EBA launched a public consultation on changes to its existing Guidelines on risk-based AML/CFT supervision. The proposed Guidelines require authorities to take stock of the extent of de-risking in their jurisdiction and address de-risking in their ML/TF risk assessments.
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