Feds’ De-Risking Guidance May Not Move Needle at Banks

Marc-Alain Galeazzi spoke to Law360 about the Financial Crimes Enforcement Network and federal banking agencies teaming up to issue a joint statement broadly counseling against de-risking, a practice in which banks restrict or refuse service to customers in industries and regions deemed at high risk for financial crime.

“It takes the temperature of what the regulators are focused on and also what the examiners will look at,” Marc-Alain said of the statement. “It’s not a rule or regulation, but it does provide banks and other financial informal institutions with good information on how they might need or want to change their approach to anti-money laundering compliance.”

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