Bank/Thrift Supervision   |    Capital    |    CFPB    |    Deposit Insurance    |    Interchange    |    Mortgage Finance
Municipal Advisors   |    OCC-OTS Merger   |    Preemption    |    QM - QRM    |    Swaps   |    Volcker Rule    |    Full Topics List
Qualified Mortgage - Qualified Residential Mortgage
Consumer Financial Protection Bureau - CFPB
Bank/Thrift Holding Company Supervision
Deposit Insurance
Mortgage Finance
Municipal Advisors
OCC-OTS Merger
Volcker Rule
Corporate Governance
Financial Stability Oversight Council (FSOC)
Office of Financial Research (OFR)
Systemic Risk
Supervision and Oversight
Payment, Clearing and Settlement
Prudential Supervision
Trust & Securities
Asset-Backed Securities
Resolution Authority

Tuesday, November 17, 2015

Szubin: Risks Should be Managed, Not Avoided Altogether

Speaking at the ABA/ABA Money Laundering Enforcement Conference, Acting Treasury Undersecretary Adam Szubin stressed the importance of healthy correspondent banking relationships, cautioning banks against “derisking,” or avoiding regulatory risk by terminating, restricting or denying services to a broad class of clients.

Szubin said:
We hear that derisking is pushing people out of the regulated financial system, preventing countries from accessing the dollar, depressing global trade flows or straining global development.

He added that the Treasury is working closely with the World Bank, Financial Stability Board and other global financial regulators to gather data on derisking in an effort to establish financial and regulatory policy.

Szubin acknowledged that AML/CFT standards are often invoked as negative drivers for derisking, but stressed that the current standards would not be rolled back or diluted.
We require institutions to be vigilant as they identify potential risks, and to design and implement effective AML/CFT programs that assess and address those risks.

No comments:

Post a Comment

Please read our comment policy before making a comment.