Recital 114

(114) Cooperation with other authorities competent for supervising credit institutions under Directives 2014/92/EU and (EU) 2015/2366 has the potential to reduce unintended consequences of AML/CFT requirements. Credit institutions might choose to terminate or restrict business relationships with customers or categories of customers in order to avoid, rather than manage, risk. Such de-risking practices could weaken the AML/CFT framework and the detection of suspicious transactions, as they push affected customers to resort to less secure or unregulated payment channels to meet their financial needs. At the same time, widespread de-risking practices in the banking sector could lead to financial exclusion for certain categories of payment entities or consumers. Financial supervisors are best placed to identify situations where a credit institution has refused to enter into a business relationship despite possibly being obliged to do so on the basis of the national law implementing Directive 2014/92/EU or Directive (EU) 2015/2366, and without a justification based on the documented customer due diligence. Financial supervisors should alert the authorities responsible for ensuring compliance by financial institution with Directive 2014/92/EU or Directive (EU) 2015/2366 when such cases arise or where business relationships are terminated as a result of de-risking practices.

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Source: EUR-Lex CELLAR · retrieved 2026-09-04 · Text as adopted (Official Journal); later amendments are not incorporated in this text.