Asylum seekers shut out of financial system by some EU banks, watchdog finds

FILE PHOTO: The skyline with the banking district is photographed in Frankfurt, Germany, October 01, 2021. REUTERS/Kai Pfaffenbach

LONDON (Reuters) - Some European Union banks are shutting out asylum seekers and other types of customers in mishandled efforts to comply with anti-money laundering rules, the bloc's 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.