Anyone tracking the latest FATF grey list updates? Specifically interested in the ripple effect on correspondent banking relationships for jurisdictions newly added or those with continued deficiencies. Seeing some banks de-risking aggressively, creating challenges for legitimate cross-border transactions. How are firms adapting their due diligence to mitigate this without excessive friction?
Our firm has seen an uptick in rejected transactions from previously stable partners. We're enhancing our internal risk assessment models, but it's a constant battle to stay ahead of the curve.
I wonder if the FATF truly considers the unintended consequences of these listings. It seems to disproportionately impact legitimate businesses and individuals more than the illicit actors they're trying to target.
We've focused heavily on source of wealth and funds verification for any entity linked to grey-listed countries. It adds time, but it's essential for maintaining our banking relationships.
We've had to restructure some of our payment flows, routing through less direct but more 'compliant' jurisdictions. It's less efficient but keeps the lights on.
It's not just new additions; countries with 'continued deficiencies' are often treated even more cautiously. The perceived risk just builds over time for those jurisdictions.
Honestly, it feels like the goalposts keep moving. What was sufficient due diligence a year ago isn't enough now, and it's a huge operational burden to keep up.
Definitely tracking this. The de-risking trend is a huge headache, especially for smaller banks in affected regions. It's almost easier for them to just avoid certain corridors altogether.
Is anyone seeing innovation in this space? Perhaps new tech solutions for more granular and efficient due diligence, rather than just broad-stroke de-risking?