De-Risking ‘Phenomenon’ Puts 700 Million Globally at Risk

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August 30, 2017

The current era of political unrest and uncertainty, coupled with the rise of terror and cyberattacks, means that financial institutions have had to adhere to increasingly strict policies to minimize their risk of being involved in money laundering or funding terrorism.

The regulations and legislation in place work to prevent the cross-border flow of money to criminal groups, creating a more secure financial sector. However, the consequence of these policies can have a far-reaching costly effect on people in poor countries and has given rise to an inadvertent practice known as “de-risking.”