De-risking’ in The Caribbean Region – a CFATF Perspective

In the global framework for managing and mitigating money laundering and terrorist financing (ML/TF) risks, a risk-based approach (RBA) requires the adjustment of the implementation of measures in proportion to the level of ML/TF risk presented by the specific circumstances – with stronger measures in higher-risk situations. ‘De-risking’ (defined as the termination or restriction of business relationships with entire countries or classes of customers in order to avoid rather than manage the risks (October 2016, FATF Guidance on Correspondent Banking Services)) remains a challenge for the Caribbean region.