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  1. #1
    4TYWuykOEz
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    Bankers say “derisking” underway amid sanctions crackdown; that’s the point, U.S. regulator says

    A process of “derisking” is underway by financial firms exiting sectors that represent compliance landmines, bankers said on Tuesday, but a top U.S. sanctions enforcer said that is sometimes just the right move.

  2. #2
    Guest

    Bankers say “derisking” underway amid sanctions crackdown; that’s the point, U.S. regulator says

    “It is not at all uncommon for me to hear that a compliance overhaul was done and certain customers, certain lines of activity were deemed too risky to persist. That may be exactly the right response to a situation where the risk outweighs the benefit,” said Adam Szubin, director of the U.S. Treasury’s Office of Foreign Assets Control (OFAC), the lead agency for the enforcement of U.S. financial sanctions.

  3. #3
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    Bankers say “derisking” underway amid sanctions crackdown; that’s the point, U.S. regulator says

    Szubin addressed the annual SIBOS conference by Swift, the financial industry’s communications cooperative. At the conference, bankers cited lines of business they were reconsidering amid an enforcement crackdown and rising penalties for sanctions violations. The $9 billion fine and guilty plea BNP Paribas agreed to in June, under a deal with U.S. authorities over charges related to the banks dealings with blacklisted countries including Sudan and Iran, was high on the bankers’ minds, as were complex new U.S. sanctions imposed on Russia over its intervention in Ukraine.

  4. #4
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    Bankers say “derisking” underway amid sanctions crackdown; that’s the point, U.S. regulator says

    “Our sense of how well we have to manage that risk is evolving with the regulatory landscape. And the result is that we are exiting and becoming more conservative about providing services to certain segments,” said Bob Werner, head of HSBC Holdings Plc’s global financial crimes compliance and anti-money laundering operations. Werner, a former OFAC head, was hired by HSBC after the bank in 2012 paid a $1.9 billion fine to settle U.S. charges over anti-money laundering lapses.

  5. #5
    Guest

    Bankers say “derisking” underway amid sanctions crackdown; that’s the point, U.S. regulator says

    The bank is reevaluating its risk exposure in sectors such as money services businesses, charities, embassies and correspondent banking relationships, Werner said. “As the regulatory environment continues to get less forgiving, as the programs get more complex, it’s not the size of the fine … it’s the reputational harm that occurs to a financial institution that’s of greatest concern,” he said.

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