Session 5: Addressing de-risking, illicit financial flows and financial exclusion through development co-operation

Mar 26, 2025 | 3:30 PM - 5:00 PM
Main Room

Description

De-risking, driven by geopolitical turbulence, expanding sanctions regimes, or complex AML/CFT regulations, has led financial institutions to scale back services in ‘high-risk’ geographies and customer groups. This trend undermines financial inclusion - a vital enabler of Sustainable Development Goals - by increasing remittance costs, restricting trade finance, and disrupting humanitarian aid delivery. The impacts on aid effectiveness, risks of aid diversion, and the safety of aid workers are also severe. This session will convene experts from the private sector, NGOs, regulators, and donors to explore concrete solutions. Discussions will leverage findings from an upcoming 2025 OECD report on de-risking. Special attention will be given to innovative technologies that enable safer, faster, and more accessible cross-border financial services. Panellists will examine how international co-operation, public-private partnerships, and strong political commitment can create incentives to mitigate de-risking while safeguarding financial systems from illicit financial flows.