Secretary General of Arab Banks Association Wissam Fattouh. (The Daily Star/HO)
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Wissam Fattouh, secretary-general of the Union of Arab Banks, said Arab banks feel that the derisking applied by the international correspondent banks against them has turned into financial discrimination.However, there were complains that some of the correspondent banks prefer to terminate all business relationships with banks in the Middle East.Citing a study conducted by the IMF in June 2016, Fattouh said 55 percent of banking authorities around the world have reported a retreat in their relationship with correspondent banks and 75 percent of major international banks announced they have reduced their relations with correspondent banks.He added that some of the correspondent banks resort to derisking instead of conducting due diligence on the bank which transferred the money. Fattouh noted that the correspondent banks or most of them prefer not to deal with small financial service companies because most of their transactions are not very significant.
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