19 Questions
What information does the section on Regulatory Compliance and Management collect?
Details about the bank's compliance with relevant anti-money laundering and terrorist financing regulations, as well as management's involvement in maintaining compliance.
What does the Risk Management section cover?
The process for periodically reviewing risk assessments and responding to changes in the risk landscape.
What does the Training and Awareness section focus on?
The bank's training programs and awareness initiatives related to financial economic crime, including the frequency, content, and target groups.
What information does the Independent Audits and Reviews section collect?
Details about the nature and frequency of internal and external audits of the bank's anti-money laundering and terrorist financing programs, including the scope, communication of findings, and the role of independent audits in continuous improvement.
What does the Continuous Monitoring and Update section cover?
The process for periodically reviewing risk assessments and how the bank responds to changes in the risk landscape, including new legislation, market developments, and emerging threats.
What information is provided in the Responsibility and Contact Information section?
Details on who within the organization is responsible for AML compliance and specific contact information for further correspondence or questions.
What is the purpose of the Correspondent Banking Due Diligence Questionnaire (CBDDQ)?
To provide a standardized framework for collecting information about anti-money laundering policies
What should correspondent banks do if anything changes at the partner bank?
Adjust their risk assessment and consider the need for more information
What is the primary activity that correspondent banks focus on when processing cross-border transfers?
Ensuring partner bank compliance with sanctions
What is the purpose of asking for more information about a specific transaction if it appears unusual?
To investigate further and understand the reasonableness of the transaction
Why is continuous monitoring of correspondent banking relationships necessary according to the text?
To manage risks effectively over time
What is discussed in the Correspondent Banking Due Diligence Questionnaire (CBDDQ) regarding company information?
Detailed company information like legal name and structure
Which organization developed the Correspondent Banking Due Diligence Questionnaire (CBDDQ)?
A collaboration between Wolfsberg Group and BAFT
Why do correspondent banks use different methods and tools to monitor risks posed by partner banks?
To detect and report unusual activities effectively
Under what circumstances should correspondent banks consider conducting additional targeted monitoring?
If there are many suspicious activities or payments do not correspond to the stated purpose of the account
What is the primary objective of the FATF's guidance on correspondent banking?
To ensure that correspondent banks are not used for illicit financial activities
What is the primary responsibility of a correspondent bank when conducting due diligence on a responding institution?
To understand the nature of the responding institution's business operations and customer base
What is the primary purpose of the FATF's 40 Recommendations, as mentioned in the text?
To establish a global framework for combating money laundering and terrorist financing
What is the primary reason why financial institutions must conduct due diligence on their correspondent banking relationships?
To assess the risk of the correspondent bank engaging in illegal activities
Learn about the importance of conducting Know Your Customer investigation into correspondent banks to comply with anti-money laundering laws. Explore the basics of correspondent banking and the FATF guide published in October 2016.
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