Correspondent Banking relationships are essential in the global payment system and vital to international trade and the global economy as a whole, including for emerging markets and developing economies. Correspondent banking relationships are subject to anti-money laundering / counter-terrorist financing measures: the FATF Recommendations require financial institutions to identify and manage the risks associated with these business relationships and to apply specific due diligence measures when they are conducted on a cross-border basis.

In recent years, financial institutions have increasingly decided to avoid, rather than to manage, possible money laundering or terrorist financing risks, by terminating business relationships with entire regions or classes of customers. This so-called 'de-risking' practice has negatively impacted correspondent banking. De-risking is not in line with the FATF Recommendations, and is a serious concern to the international community, including the FATF and the FATF-Style Regional Bodies. De-risking can result in financial exclusion, less transparency and greater exposure to money laundering and terrorist financing risks.