US: VIEWS ON PROPOSALS TO IMPROVE BANKING ACCESS FOR ENTITIES TRANSFERRING FUNDS TO HIGH-RISK COUNTRIES

On 16 December, the Government Accountability Office published a report saying that money transmitters and non-profits that transfer funds to recipients in countries at high risk for money laundering or terrorist financing have reported bank account closures and delays or denials of requests to transfer funds.  Banks cited the high costs of conducting the due diligence necessary to ensure funds distributed in high-risk countries are not used for illicit purposes, and also cited heightened scrutiny they receive from regulators when banking higher-risk money transmitters and non-profits and uncertainty about regulatory expectations for conducting due diligence.  The GAO spoke to banks and other stakeholders about proposals to improve banking access.  For example, most believe that an enhanced federal role in humanitarian transfers would help ensure money reaches its intended recipients, but it may also discourage high-risk countries from enacting needed reforms.

https://www.gao.gov/products/gao-22-104792

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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