Federal government risk reduction guidelines may not move the needle in banks

By Jon Hill (July 8, 2022, 9:32 p.m. EDT) – Federal regulators have issued a new call for banks to categorically refrain from outright shunning independent ATM operators and other customer groups in as illicit financial risks, but some financial services lawyers say the guidelines may have limited practical effect.

The Financial Crimes Enforcement Network and federal banking agencies teamed up to release a joint statement on Wednesday advising broadly against risk reduction, a practice in which banks restrict or deny service to customers in industries and regions deemed high risk. of financial crime.

Intended as a reminder of existing policy, the statement says banks should remember to use a “risk-based approach” when…

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