The FATF Guidance on Correspondent Banking Services details recommendations for minimizing the AML/Sanctions risk from Correspondent Banks.
Banks are responsible for ensuring their Correspondent Banks have comprehensive AML/Sanctions procedures and have implemented them. As part of the management of Correspondent Banks, a bank must address the following:
- Business Profile – Gather information on their Correspondent Bank’s business
- AML/Sanctions Controls – Assess the adequacy and implementation of Correspondent Bank’s AML/Sanctions controls
- Account Opening – Obtain Senior Management written approval for all new Correspondent Banks
- AML/Sanctions Responsibilities – Document and have written confirmation of the responsibilities for AML/Sanctions between the bank and their Correspondent
Correspondent Bank relationships have to be periodically reviewed and the information initially collected has to be updated and reassessed.
GRC-Maestro keeps the records you need to show: the who, what, when and why regarding Correspondent Banks AML/Sanctions management.