The threat of de-risking to developing economies is a “growing cancer” that limits development, threatens regional stability and prevents participation in the international economy, Caribbean leaders have said.
The loss of correspondent banking services, caused by international operators withdrawing from nations seen as high risk, was described as “an urgent and existential threat of considerable relevance” at a United Nations General Assembly debate last month.
Antigua and Barbuda Prime Minister Gaston Browne said that banks fear fines of hundreds of millions of dollars for small infractions, and so have opted to withdraw essential correspondent banking relations from financial institutions in the Caribbean, Central America and Africa.
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