Tower Hamlets in London

Understanding Bank De-Risking and its Effects on Financial Inclusion

De-risking’ refers to financial institutions closing the accounts of clients perceived as high risk for money laundering or terrorist financing abuse, namely money service businesses, non-profit organizations, correspondent banks and foreign embassies. This report explores the linkages between bank de-risking and the ascendance of the risk-based approach to anti-money laundering and countering the financing of terrorism (AML/CFT). 

A woman trader in Hargeisa market serves a cup of fresh camel’s milk. Small-scale business women often rely on remittances as start-up money for their stalls. Photo: Petterik Weggers/Oxfam

Hanging by a Thread

Every year, the Somali diaspora sends home approximately $1.3bn. But this system of remittances to Somalia is under threat, particularly in the US and the UK.

Keeping the Somalia Lifeline Open

Every year, Somali migrants around the world send approximately $1.3 billion to friends and families at home, dwarfing humanitarian aid to Somalia.

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