Page 6 of 13  Declining correspondent banking relationships  Over the past few years, it has been reported that a number of the large international financial institutions have reduced their foreign correspondent banking relationships. This is a process commonly referred to as „de-risking‟.
Notwithstanding the underlying reasons for de-risking, its culmination may be that financial transactions are forced into less-regulated or even non-regulated channels, thereby reducing the transparency of financial flows and countering efforts aimed at reducing financial exclusion. This will inevitably result in increased risks of moneylaundering and terrorism financing.