De-banking having a ‘severe impact’ on Pacific Islanders

Losing correspondent bank relationships can impact the accessibility and affordability of banking services in our region and make Pacific Island nations less attractive investment and trade partners.

The region’s economic ministers say the expiry of correspondent banking relationships (CBR) is having a severe impact on the lives of Pacific Islanders, including seasonal workers, micro, small, and medium enterprises, and other vulnerable groups.

But the underlying causes of ‘de-banking’ are not going away, says Australia’s Assistant Treasurer and Minister for Financial Services, Stephen Jones.

The drivers of de-banking include the risks—real and perceived—of money laundering, financing terrorism and (weapons) prefoliation financing. The increasing burden of compliance with Anti Money Laundering/Combatting the Financing of Terrorism (AML/CFT . . .

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