The U.S Treasury has released its 2023 De-Risking Strategy, as required under the 2020 Anti-Money Laundering Act.
The strategy identifies the key customer categories that are impacted most often by de-risking and the top causal factors behind the phenomenon, where financial institutions end or restrict business relationships indiscriminately based on broad categories of customers, instead of managing the risks of those customers.
The strategy recommends policy options for combatting de-risking, including:
- Reviewing firms’ AML/CTF examination practices;
- Improving AML/CTF programmes and implementing risk-based approaches;
- Improving international cooperation to raise AML/CTF compliance;
- Explore the potential for emerging technological solutions;
- Modernising U.S sanctions programmes; and
- Furthering public-private sector engagement in areas including AML/CTF regulatory obligations and compliance practices.
Firms operating with or in the United States should review the Treasury’s de-risking priorities for the year ahead.