The Banking Executive Magazine - December 2025 Issue

PSD 2025 a living partnership” that keeps Arab banks connected to global markets and U.S. institutions engaged in one of the world’s most dynamic regions. This cooperation is essential not only to reduce risks but also to expand op- portunities. In a pointed reference to de-risking, El Etreby argued that “compliance should not lead to ex- clusion. It should lead to inclusion.” Effective risk management, in his view, ought to facilitate legitimate flows of trade, investment, and remit- tances that uplift communities and power development, rather than in- advertently cutting off regions from the financial system. He closed by urging boldness, adaptability, and collective action in the face of change. Armed with innovation, committed regulators, and an unyielding belief that integrity is non- negotiable, the U.S.–MENA partner- ship can “shape” the future of fi- nance rather than merely react to it. By doing so, he affirmed, this part- nership will continue to thrive not out of necessity but as “a beacon of how regions, working hand in hand, can create trust, resilience, and pros- perity for generations to come”. DR. WISSAM FATTOUH, SECRETARY GENERAL, UNION OF ARAB BANKS AND WORLD UNION OF ARAB BANKERS In his address, Dr. Fattouh reinforced many of the same themes while fo- cusing on concrete developments and challenges in the MENA finan- cial sector. He addressed the PSD as a “important platform” reflecting a shared U.S.–Arab commitment to communication and cooperation in service of financial stability and sus- tainable growth. Offering thanks to the conference partners (FRBNY, IMF, U.S. Treasury – the last of which was absent due to a U.S. government shutdown – and BNY as host), Fat- touh noted that the broad participa- tion of stakeholders underscored a collective responsibility to shape the future of the financial sector. He then turned to the state of the region, ob- serving that the past year brought sig- nificant positive change and new opportunities. Notably, the threat of terrorism that once destabilized the region is receding: “terrorism is being steadily defeated,” evidenced by the drying up of terror financing sources in countries like Syria, Lebanon, and Iraq. However, he cautioned that this mission is not yet complete. To con- solidate the gains in combating illicit finance, remaining gaps in financial transparency must be addressed. Most importantly is the persistent challenge of the cash-based econ- omy in many Arab countries, as well as alternative money-laundering methods. Dr. Fattouh cited the mis- use of high-value assets – such as art, antiques, precious stones and other valuables – to disguise and transfer illicit funds as a growing concern. “As long as cash dominates and these alternative channels remain ISSUE 204 DECEMBER 2025 the BANKING EXECUTIVE 31