Monday , September 21 2020
Home / Bank of International Settlement / Closing the loop: AML/CFT supervision of correspondent banking

Closing the loop: AML/CFT supervision of correspondent banking

Summary:
FSI Insights  |  No 28  |  03 September 2020 by  Rodrigo Coelho, Jonathan Fishman, Amer Hassan and Rastko Vrbaski PDF full text (363kb)  |  25 pages Under the auspice of the Financial Stability Board's four point action plan, several international organisations have taken measures to address the decline in correspondent banking relationships, including further examining the dimensions of the decline and implications for financial inclusion and financial stability; clarifying regulatory expectations; supporting domestic capacity-building in

Topics:
International Settlement considers the following as important:

This could be interesting, too:

New York Fed writes Did State Reopenings Increase Consumer Spending?

Amol Agrawal writes Reason for decline in inflation in last 40 years: Monetary policy or Asia joining world economy production?

International Settlement writes Price search, consumption inequality, and expenditure inequality over the life-cycle

Amol Agrawal writes Kraken cryptocurrency exchange of US: gets a banking licence!

FSI Insights  |  No 28  | 
03 September 2020
PDF full text
 (363kb)
 |  25 pages

Under the auspice of the Financial Stability Board's four point action plan, several international organisations have taken measures to address the decline in correspondent banking relationships, including further examining 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.

Effective supervision is also crucial to successfully addressing some of the concerns which may lead to loss of relationships. This paper aims to contribute to the international dialogue by focusing on supervisory practices relating to correspondent banking activities. In view of the observed decline in correspondent banking relationships, practices to address excessive de-risking were a particular area of consideration. As a general matter, while the study found that legal and regulatory frameworks are consistent with international standards, their implementation is more variable and would benefit from greater alignment with the standards and convergence across jurisdictions. 

JEL classification: F24, F30, G21, G38

International Settlement
The Bank for International Settlements (BIS) is an international company limited by shares owned by central banks which "fosters international monetary and financial cooperation and serves as a bank for central banks". The BIS carries out its work through subcommittees, the secretariats it hosts and through an annual general meeting of all member banks. It also provides banking services, but only to central banks and other international organizations. It is based in Basel, Switzerland, with representative offices in Hong Kong and Mexico City.

Leave a Reply

Your email address will not be published. Required fields are marked *