What is "de-risking" and why is it controversial?
The wholesale exit from entire customer segments (e.g. money-services businesses, NGOs, correspondent relationships in the Pacific) rather than managing the risk on a customer-by-customer basis. FATF, the World Bank and FSB have repeatedly criticised de-risking as inconsistent with the risk-based approach and as causing financial exclusion. Regulators expect documented justification for any segment-level exit decision.