As the United States and other Western countries turn the screws on criminals, hackers, terrorist organizations, and sanctions evaders attempting to access global financial markets, financial institutions could respond by reducing their connections to risky sectors, according to a Treasury Department official.
Brian Nelson, undersecretary of the Treasury for terrorism and financial intelligence, said in a speech Sunday delivered at the Pacific Banking Forum in Brisbane, Australia, that de-risking—the indiscriminate termination of banking relationships with broad ranges of customers by financial institutions—has led to a decline in the number and strength of international connections between banks in areas considered to be high risk.
