In May 2016, my colleague Matthew Newton
outlined some of the reasons for "de-risking" in the
banking industry. One of the reasons he identified was that senior
executives of many banks are now keen to demonstrate that they have
regained control following criticism of their leadership during the
recession.
"De-risking" can be a double-edged sword from a
reputational perspective. While banks may want to show regulators
and the public that they are distancing themselves from suspected
money laundering, they may, in carrying out the
"de-risking" process, face claims from their clients that
they have unreasonably terminated banking services. Indeed, this
was precisely what Mr. Wafic Said, a billionaire philanthropist,
alleged his bank, Barclays, had done to him earlier this year.
Aggrieved by Barclays' decision to force him to close his
personal accounts and those associated with his charities and
business ventures, Mr. Said issued legal proceedings for an
