ILI partners with the Asian Development Bank Institute (ADBI), Global Finance and Technology Network (GFTN) and Griffith University, to address de-banking
This May, ADBI published a Policy Brief called “Navigating the Nexus of Financial Crime Prevention and Financial Inclusion in the Age of Technology and FinTech,” co-authored by ILI. The Policy Brief aims to address the issue of de-banking, also known as de-risking, where financial institutions terminate or restrict business relationships with customers to avoid rather than manage risks associated with anti-money laundering and countering the financing of terrorism (AML/CFT risk). De-banking disproportionately impacts groups that have been traditionally excluded from formal financial services, including migrants and indigenous communities. The Policy Brief was published against the backdrop of recent efforts by the Financial Action Task Force (FATF) to revise AML/CFT standards to provide better support for financial inclusion. Policy recommendations emphasize closer collaboration between regulators and technologists, clearer FATF guidance on financial inclusion, and stronger measures to address peer-to-peer, crypto, and virtual asset misuse.