Correspondent Banking

Correspondent banking involves one financial institution providing services on behalf of another, typically across borders. This relationship allows banks to facilitate transactions in different regions where they do not have a physical presence. Due to its nature, correspondent banking carries compliance risks, including exposure to money laundering and terrorism financing.

Implementing robust compliance measures in correspondent banking helps manage these risks and ensures adherence to anti-money laundering (AML) and counter-terrorism financing (CTF) regulations.