AML/CFT SUPERVISION OF CORRESPONDENT BANKING

On 3 September, the Bank of International Settlement published a paper about measures taken to address the decline in correspondent banking relationships, including further examination of the dimensions of the decline and implications for financial inclusion and financial stability; clarifying regulatory expectations; supporting domestic capacity-building in jurisdictions that are home to affected respondent banks; and strengthening tools for due diligence by correspondent banks.  It says that effective supervision is also crucial to successfully addressing some of the concerns which may lead to loss of relationships.  The paper aims to contribute to the international dialogue by focusing on supervisory practices relating to correspondent banking activities.  It is said that while it was found that legal and regulatory frameworks in place are consistent with international standards, their implementation is more variable and would benefit from greater alignment with the standards and convergence across jurisdictions.

https://www.bis.org/fsi/publ/insights28.pdf

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s