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Like the US and UK governments, the European Banking Authority (EBA) and members of the European Parliament, Finland is concerned that these issues appear to be on the rise for businesses.
The Financial Supervisory Authority (FIN-FSA) raised its concerns over growing signs of de-risking by Finnish banks, particularly in their treatment of corporate clients. A thematic review revealed rising account rejections and relationship terminations linked to anti-money laundering (AML) obligations.
The review, based on a March 2025 survey of 10 deposit banks, examined how financial institutions balance AML compliance with financial inclusion when rejecting, restricting or terminating customer relationships. It followed earlier studies on the issue in 2022 and 2023.
The FIN-FSA reported that rejection rates for account applications from legal entities have increased sharply, with around 11 percent of applications turned down in 2024.
Although not all were directly tied to AML obligations, approximately half of corporate account closures were attributed to such rules.
The authority said this indicates “a de-risking phenomenon related to legal persons” and highlighted that banks apply varying criteria in customer selection.
The most common grounds for refusals included incomplete customer due diligence, lack of clarity on the origin of funds and customer risk levels exceeding banks’ thresholds.
For private individuals, rejection rates remain low, at just 0.8 percent of applications in 2024, reflecting banks’ statutory obligation to offer basic accounts.
However, account closures among individuals have increased, often due to inactivity, changes in residency or failure to provide required documentation. Although many closures may not negatively impact customers, the FIN-FSA cautioned that the trend could also signal de-risking behaviour creeping into retail banking.
The need for balance
The report also criticised banks for inadequate statistics and documentation on rejected and terminated relationships.
Many institutions lack precise data on processing times for account applications, with most relying on estimates.
This, the FIN-FSA said, weakens both banks’ and regulators’ ability to assess the scale and impact of de-risking.
It recommended that banks collect and maintain detailed statistics on account rejections and closures, including reasons and customer type; monitor processing times for all account applications, applying the 10-day statutory limit for basic accounts more broadly to ensure access to essential banking services; and assess the impact of AML-driven risk management decisions on financial inclusion to ensure measures remain proportionate.
The FIN-FSA warned that although banks must comply with AML legislation, they need to balance risk management with customer access. It noted that the procedures for limiting and declining a customer relationship must also take into account the interests of the customer and what is reasonable.
The regulator added that financial inclusion considerations have not yet been integrated into banks’ AML risk assessments, despite earlier recommendations and new EBA guidelines.
It plans to continue to monitor banks whose practices appear inadequate, with a focus on how customer due diligence and risk-based approaches are applied in practice.
Although FIN-FSA stressed that current data does not prove that banks’ decisions are unjustified or excessive, it concluded that the increase in customer relationship terminations and rejection rates provides indications of a de-risking phenomenon, which has harmful effects on both individuals and society.
An ongoing concern
The situation has become a prominent topic in Western countries in recent years.
In September 2025, as covered by Vixio, right-wing MEPs Fernand Kartheiser, Stephen Nikola Bartulica and Elisabeth Dieringer challenged the European Commission over what they described as the growing practice of “debanking” across the EU.
In a written question, they warned that sudden account closures, often without explanation or appeal, are disrupting livelihoods and raised concerns that broad concepts like “reputational risk” allow banks to withdraw services on political grounds.
The MEPs urged the Commission to consider stricter safeguards, including judicial authorisation, transparency requirements and clearer appeal mechanisms.
The unease appears to be bipartisan: in 2024, centre-left MEP Vilija Blinkevičiūtė warned that banks were imposing conditions on non-residents that risk undermining EU law on financial inclusion.
In addition, Belgian research published in 2023 also highlighted persistent barriers for non-residents, recommending reforms to guarantee basic accounts, mandate written explanations and strengthen oversight.
Globally, governments are tightening rules on debanking.
In August 2025, US President Donald Trump signed an executive order removing “reputational risk” from regulatory guidance, while the UK announced reforms requiring 90 days’ notice and explanations for closures from April 2026.
Regulators such as the EBA and the UK’s Financial Conduct Authority (FCA) have also raised concerns that de-risking harms vulnerable groups and undermines competition, calling for proportional approaches to AML compliance.
The FIN-FSA's findings echo broader European and global concerns that AML-driven de-risking is narrowing access to banking services.
For payments firms, this reinforces the need to demonstrate robust compliance while maintaining fair and transparent onboarding processes.
Those that can strike this balance will be better placed to preserve banking access, avoid regulatory scrutiny and sustain customer trust.
