The De-Risking Threat to Asia Pacific Fintechs – A Report from Kapronasia in Collaboration with Banking Circle
In recent years, banks in the Asia-Pacific (APAC) region have faced rising regulatory scrutiny amid a global fight against money laundering and other financial crime. Banks have been rocked by the massive 1MDB scandal, implicated in the FinCEN papers and are wary of being exposed to the cryptocurrency industry, which is in its nascent stages and lacks comprehensive regulation.
As a result, financial institutions are pausing taking on any clients they perceive as overly risky. Such clients require additional due diligence work, and should something go awry, the costs of compliance failure can be considerable, from stiff fines to reputational damage. Consequently, traditional financial institutions are shedding customers or refusing to onboard firms who they deem too risky, putting significant strain on correspondent banking relationships.
In The De-Risking Threat to Asia Pacific Fintechs report, written in collaboration with Banking Circle, we explore how banks across Asia are re-thinking their customer relationships, and the not so positive implications for fintechs.
Related Reports
Related posts
Posted on: March 4, 2025
Future-Proofing Digital Asset Custody: Why Asia Pacific Banks Must Act Now
Posted on: February 12, 2025
Building a Data-Driven Culture: Transforming Financial Institutions
Posted on: April 29, 2024
