Within the framework of the project Countering Economic Crime in Serbia, a two-day workshop on the unintended consequences of anti-money laundering measures to financial inclusion of vulnerable groups was held in Belgrade, with participation of representatives of the National Bank of Serbia, Securities Commission and financial institutions (banks, e-money institutions, insurance companies, brokers) as well as the civil society organisations to discuss the challenges and consequences of de-risking practices, as well as the application of the risk-based approach in line with international AML/CFT standards.
The aim of the workshop was to present the findings of assessment of de-risking practices in financial sector in Serbia, and to raise awareness of financial institutions on possible risks of exclusion of vulnerable groups through indiscriminate application of measures to prevent money laundering and terrorism financing. The participants discussed distinction between risk-based approach and de-risking practices in all phases of the business relationship from customer onboarding, through transaction and relationship management and application of due diligence measures, internal decision-making, and possible offboarding.
Through interactive sessions, participants explored practical solutions to mitigate the negative effects of de-risking, including simplified customer due diligence measures, alternative means of identification, enhanced monitoring, and flexible onboarding processes. Special emphasis was placed on financial inclusion of women and comparative best practices, including collection of gender-disaggregated data, development of adapted financial products and sensitizing the employees through continuous education on risk-based approach.
The workshop contributed to greater coherence between supervisory expectations and financial sector practices with regard to ensuring compliance while avoiding unnecessary financial exclusion.
The activity took place within the project “Countering Economic Crime in Serbia”, funded by Sweden, represented by the Swedish International Development Cooperation Agency, and implemented by the Council of Europe.
