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Questions and Answers
Correspondent banking refers to an agreement between two financial institutions from the same country.
Correspondent banking refers to an agreement between two financial institutions from the same country.
False
The Wolfsberg Group is a partnership between the twelve largest banks in the world.
The Wolfsberg Group is a partnership between the twelve largest banks in the world.
True
The Wolfsberg Group's framework helps financial institutions comply with anti-money laundering and counter-terrorism financing laws and regulations.
The Wolfsberg Group's framework helps financial institutions comply with anti-money laundering and counter-terrorism financing laws and regulations.
True
Correspondent banking services include making payments, collecting documents, managing accounts, and establishing physical branches in other countries.
Correspondent banking services include making payments, collecting documents, managing accounts, and establishing physical branches in other countries.
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The Financial Action Task Force (FATF) defines correspondent banking as the provision of banking services by one bank to another.
The Financial Action Task Force (FATF) defines correspondent banking as the provision of banking services by one bank to another.
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Correspondent banking is not essential for international trade and financial transactions.
Correspondent banking is not essential for international trade and financial transactions.
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Correspondent banks facilitate international trade transactions by directly transferring money between companies in different countries.
Correspondent banks facilitate international trade transactions by directly transferring money between companies in different countries.
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Currency management, including currency conversions and maintaining nostro/vostro accounts, is a core aspect of correspondent banking.
Currency management, including currency conversions and maintaining nostro/vostro accounts, is a core aspect of correspondent banking.
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A nostro account is an account that a bank holds with a foreign bank in the currency of that foreign country.
A nostro account is an account that a bank holds with a foreign bank in the currency of that foreign country.
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Smaller banks typically have direct access to global financial markets without relying on large international banks with correspondent relationships.
Smaller banks typically have direct access to global financial markets without relying on large international banks with correspondent relationships.
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Correspondent banks are subject to strict regulation, particularly regarding Financial Economic Crime, due to the involvement of multiple jurisdictions in international transactions.
Correspondent banks are subject to strict regulation, particularly regarding Financial Economic Crime, due to the involvement of multiple jurisdictions in international transactions.
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The phenomenon of 'de-risking' refers to banks increasing their correspondent banking services to mitigate regulatory pressure and compliance costs.
The phenomenon of 'de-risking' refers to banks increasing their correspondent banking services to mitigate regulatory pressure and compliance costs.
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