london jan 5 reuters  some european union banks are shutting out asylum seekers and other types of customers in mishandled efforts to comply with antimoney laundering rules the blocs banking watchdog said banks have become far more nervous as regulators in the eu the united states and elsewhere crack down on inadequate know your customer checks prompting some people to complain that they are being unfairly locked out of the financial system the european banking authority eba said on wednesday that its research found that socalled derisking by banks and payment firms takes place across the eu and affects asylum seekers and notforprofit organisations in particular when derisking banks exclude some customers because their profile suggests potential moneylaundering or terrorist financing risks which could damage their reputation the ebas findings suggest that derisking has a detrimental impact on the achievement of the eus objectives in particular in relation to fighting financial crime effectively and promoting financial inclusion competition and stability in the single market the watchdog said in a statement the eba said it has already issued guidance for national regulators and banks on how to manage money laundering risks properly it will check on what steps national regulators are taking to tackle unwarranted derisking and report back in 2023 after a money laundering scandal at denmarks danske bank the european commission set out proposals last year to create an antimoney laundering authority along with other measures which the eba said would go some way to ending unwarranted derisking but the commission could go further by clarifying in which situations an account with basic features should be rejected or closed with a complaint mechanism for customers the eba said