De-risking is a method employed by correspondent banks to deny or restrict high-risk respondent banks access to some or all of their correspondent banking services. It has become prevalent in the aftermath of the 2007/2008 financial crisis, particularly affecting developing economies. Correspondent banks cite regulatory burdens, compliance costs, reputational risks and profitability concerns as drivers of de-risking. It poses significant challenges for respondent banks, leading to reduced trade, investment, banking and competition. De-risking also harms financial inclusion, erodes the presence of international banks and disrupts remittance services in developing countries heavily reliant on such flows. Underlying this phenomenon is the regulatory framework in developed countries that impose stringent anti-money laundering and combating the financing of terrorism (AML/CFT) regulations, making it costly for financial institutions to operate in small developing countries.