On 13 and 14 March 2025, over 600 public and private-sector participants took part in a virtual workshop on de-risking, organized by AFI and the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG). 

De-risking, a longstanding challenge in Eastern and Southern Africa, involves financial institutions closing the accounts of clients perceived as high risk for money laundering or terrorist financing.  

The workshop featured insight from AFI’s Head of Policy Analysis and Guidance, Robin Newnham, and Policy Specialist, Mariam Zahari, as well as Dr. Louis de Koker (La Trobe University), Liat Shetret (Elliptic), Gideon Mugendi (Citi Bank) and Ivan Kagoro (Standard Chartered Bank). 

Participants concluded that it was imperative for ESAAMLG jurisdictions to collaborate with the private sector to meet the challenge of de-risking, and to address issues highlighted through the FATF grey listing process, in order to improve their access to the global financial system.

At the same time, jurisdictions would need to keep in mind that over-compliance can be costly and can unintentionally cause financial exclusion, especially of low-risk marginalized people. It will therefore be important to encourage banks and non-bank financial institutions to assess risks individually, rather than applying blanket de-risking.

During the workshop, AFI revealed how AFI’s Pacific Islands members developed a 2021 De-risking Action Plan for the Pacific region, and encouraged collaboration among ESAAMLG member jurisdictions to develop harmonized policies and increase AML/CFT/CPF capacities together, with the aim of improving risk perceptions about the region. 

Conscious of the urgency to address de-risking, not just in Africa but in other global regions, AFI will continue to work closely with bodies such as ESAAMLG to study this important issue.