Correspondent Banking and Know Your Customer Investigation

FATF = Financial Action Task Force KYC = Know Your Customer AML = Anti-Money Laundering Correspondent banking = Relationship between financial institutions

13th FATF Recommendation = Requires understanding responding institution's business operations 40 recommendations of the FATF = Expectations from financial institutions to combat money laundering KYC investigation = Process to verify customer identities and assess risks Correspondent banking = Involves transactions between financial institutions

Collecting information on responding institution's business operations = Compliance with FATF 13th recommendation Developing a general overview of responding institution's products and services = Understanding customer base and risk factors Conducting KYC on correspondence banks = Complying with anti-money laundering laws Understanding target markets and customer segments of responding institution = Part of risk assessment by corresponding institution

<p>Customer relationships in correspondent banking = Key factor in assessing risks Considering countries and markets of responding institution = Part of understanding business profile Identified risks in correspondent banking = Guide for collecting sufficient information Business profile of responding institution = Includes products, services, and customer base</p> Signup and view all the answers

<p>Risk Management = Identification and management of risks associated with money laundering and terrorist financing Training and Awareness = Focuses on training programs and awareness initiatives for staff Continuous Monitoring and Update = Process of reviewing and updating AML procedures in response to new legislation and threats Independent Audits and Reviews = Collects information about internal and external audits of AML programs</p> Signup and view all the answers

<p>Regulatory Compliance and Management = Collects info on compliance with AML regulations and management's involvement Responsibility and Contact Information = Details on who is responsible for AML compliance within the organization Date and Signature = Includes current date and official signature for confirmation of compliance Customer Acceptance Policies = Asks about policies related to accepting customers and managing high-risk individuals</p> Signup and view all the answers

<p>AML Policies Review = Questions about the existence, review frequency, and content of AML policies Interaction with Regulatory Authorities = Inquires about frequency and nature of interactions with regulators High-Risk Management = Measures taken to identify and manage high-risk individuals like PEPs Training Content and Target Groups = Asks about the content, frequency, and target groups of training programs</p> Signup and view all the answers

<p>Correspondent bank = A financial institution that provides services on behalf of another financial institution CBDDQ = Correspondent Banking Due Diligence Questionnaire Wolfsberg Group = Group of banks developing anti-money laundering frameworks BAFT = Bankers Association for Finance and Trade</p> Signup and view all the answers

<p>Regularly check partner bank information = Continuous monitoring of transactions in correspondent accounts Adjust risk assessment if partner bank changes = Monitor real-time transactions at higher risks Investigate unusual transactions internally = Review monitoring systems for similar transactions Use different methods to monitor depending on risk = Conduct targeted monitoring for suspicious activities</p> Signup and view all the answers

<p>Shell banks = Institutions without a physical presence in any country Cross-border transfers = Transfers of funds between different countries Sanctions control systems = Systems to monitor compliance with international sanctions Financial Economic Crime = Criminal activities related to financial institutions</p> Signup and view all the answers

<p>Assess risk when establishing relationships = Collect and provide essential AML and CTF policies information Understand reasonableness of specific transactions = Develop standardized framework for information exchange Combat Financial Economic Crime = Partnerships developing anti-money laundering frameworks Provide detailed company information = Include legal name, address, country of operation, and company structure</p> Signup and view all the answers