This is because there are complex interconnections in the financial sector across banks, other financial institutions, markets, and geographies and a problem in any part of the system can rapidly transmit through the system, cascade across layers and develop into a crisis. Systemic safety can also be jeopardized by procyclicality.
The opinions of practitioners and findings in the course of AML/CFT inspections have also been taken into  BIS Review 151/2009  1  account. We emphasize on the enhancement of customer due diligence (CDD) measures to be undertaken by banks and insurance companies.