Money laundering scandals, uptick in penalties in Europe spark new risk retrenchment
As Europe’s financial conduct authorities get tougher, banks will be even less likely to support trade between the EU and states that are small and poor – a further expansion on broad bank de-risking away from regions that could present more anti-money laundering risk than they are worth.
Ever since the 2008 financial crisis, US financial misconduct fines have led the world.
However, defenders of Europe’s more collegiate approach to tackling banks’ money-laundering shortcomings say US banks also lead the world for de-risking, shunning some of the globe’s poorest countries from access to the dollar system.
Now a spate of money-laundering scandals is hardening the determination of European regulators to prove they are just as tough as their American equivalents – with recent penalties soaring into the hundreds of millions of dollars.
And it will have the same effect of turning banks further