IFC report shows that heightened post-crisis regulatory requirements, including higher capital buffers under Basel III and stricter AML/CFT/KYC rules, have increased banks’ compliance costs and risk exposure. This has led to “de-risking,” where banks terminate or curtail correspondent banking relationships. The report highlights that this disproportionately harms smaller economies (notably in Africa, the Caribbean, and the Pacific) by impeding financial inclusion, trade flows, and economic growth. The report urges stakeholders to harmonize compliance requirements, invest in examiner capacity, and leverage technological innovations to restore both financial integrity and access.