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Rolling up the welcome mat: A crackdown on financial crime means global banks are derisking

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A crackdown on financial crime has led global banks to run from risk. That has caused problems for swathes of deserving customers

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The great unbanking

Print Fly Title: 

Financial derisking

UK Only Article: 
standard article

Issue: 

Why Germany’s current-account surplus is bad for the world economy

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Rolling up the welcome mat

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20170708_ird001.jpg

WHEN some of Latvia’s banks became infected with dirty money, all paid the price. “Correspondent” banks—international banks that clear smaller banks’ foreign-currency transactions through big financial centres—began detaching from the Baltic country. JPMorgan Chase withdrew in 2013. By last year only Deutsche Bank was left. It soon stopped serving half of Latvia’s lenders, and in March began dropping the rest, leaving them at risk of being unable to …

Rolling up the welcome mat: A crackdown on financial crime means global banks are derisking

Print section
Print Rubric: 

A crackdown on financial crime has led global banks to run from risk. That has caused problems for swathes of deserving customers

Print Headline: 

The great unbanking

Print Fly Title: 

Financial derisking

UK Only Article: 
standard article

Issue: 

Why Germany’s current-account surplus is bad for the world economy

Fly Title: 

Rolling up the welcome mat

Main image: 

20170708_ird001.jpg

WHEN some of Latvia’s banks became infected with dirty money, all paid the price. “Correspondent” banks—international banks that clear smaller banks’ foreign-currency transactions through big financial centres—began detaching from the Baltic country. JPMorgan Chase withdrew in 2013. By last year only Deutsche Bank was left. It soon stopped serving half of Latvia’s lenders, and in March began dropping the rest, leaving them at risk of being unable to …