**The Impact of AML/CFT Regulations in Commonwealth Developing Countries**

The Commonwealth Secretariat has released its report on de-risking in the Commonwealth, noting that it seeks to complement and enhance previous research undertaken by international organisations, such as the Financial Stability Board, the Financial Action Task Force and the World Bank, and by research institutes, such as the Center for Global Development. This report aims to improve understanding on the issues surrounding de-risking and, more importantly, to identify a number of practical solutions to the de-banking of legitimate banks, businesses and individuals.
While the reasons for correspondent banking relationship (CBR) closures varied, the majority of Commonwealth developing countries have identified decreased profitability resulting from the increased monitoring and compliance costs of AML/CFT regulations as a key driver of de-risking. To address the wider issues of de-risking, this report presents a number of potential solutions to tackle the unintended consequences of AML/CFT regulations, namely:

* the creation of a global forum for regulators to ensure the incorporation of developing country perspectives in the development of international standards and regulation;
* the development of better guidance and risk tolerance standards for banks;
* the creation of best practice standards for money service businesses; and
* the enhancement of capacity building to assist regulators and financial institutions in the implementation of AML/CFT regulations.

In addition to these solutions a number of initiatives proposed, or being actively pursued, by members to address de-risking are discussed.

**Commonwealth experts to address concerns over banking relationships**

Today in London, the Secretariat is hosting [a dialogue](http://thecommonwealth.org/media/event/disconnecting-global-finance-conversation-de-risking-commonwealth) on the report. It will be chaired by Dr. Reginald Darius, Commonwealth Secretariat Economic Policy Director. A panel of experts will discuss the findings and recommendations in “Disconnecting from Global Finance”.

See full report [here](http://thecommonwealth.org/sites/default/files/inline/DisconnectingfromGlobalFinance2016.pdf).