Discussion Paper: Strategic Solution to De-Risking

This paper focuses primarily on solutions and mitigants to the problem arising from restriction of financial services and withdrawals of correspondent banking relationships (CBRs) which is popularly known as “de-risking” or “de-banking”. It
argues that there is no silver bullet; no one-size-fits all solution to this problem.

Although affected regional stakeholders are facing a common threat, each country and regional financial institution is also facing unique problems that will require bespoke solutions. It proposes that as a complement to the coordinated regional approach of high-level political diplomacy, (which is supported by the Caribbean Development Bank (CDB)), a simplified tailored and robust “horses for courses” approach may also
be pursued by stakeholders to identify their most relevant, practical, workable and preferred solutions by matching them to relevant causes and drivers. This approach assumes that it is possible to target specific countries and institutions with tailored solutions which will make it easier for stakeholders to refine their plans and implement solutions on a case-by-case (country-by-country and/or institution-by-institution) basis.

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