Opinion – Anti-Money Laundering enforcement, de-risking, and development constraints
The expansion of the global Anti-Money Laundering (AML) regime has significantly strengthened international efforts to combat illicit financial flows, yet its e
Opinions
2026-07-302026-07-30By Correspondent
The expansion of the global Anti-Money Laundering (AML) regime has significantly strengthened international efforts to combat illicit financial flows, yet its enforcement mechanisms have also produced complex consequences for developing economies.
As AML standards have become more rigorous and globally institutionalised, financial institutions have adopted increasingly cautious approaches to regulatory compliance. While these measures are designed to enhance financial integrity and prevent the misuse of financial systems for criminal purposes, they have also contributed to a phenomenon commonly described as “de-risking,” whereby financial institutions terminate or restrict relationships with clients, sectors, or entire jurisdictions perceived to pose elevated regulatory risks (de Koker & Jentzsch, 2013).
