The Basel Committee on Banking Supervision (Basel Committee) has published a consultation document setting out proposed revisions to the annex on correspondent banking. The Basel Committee states that the proposed revisions are consistent with the Financial Action Task Force’s (FATF) guidance on correspondent banking services issued in October 2016 and serve the same objective of clarifying rules applicable to banks conducting correspondent banking activities.
The proposed revisions develop the application of the risk-based approach for correspondent banking relationships, recognising that not all correspondent banking relationships bear the same level of risk. The risk indicators provided should help banks conduct their risk assessment. The proposed revisions also clarify supervisors’ expectations regarding the quality of payment messages as well as conditions for using “know your customer” utilities as recommended in the Committee on Payments and Market Infrastructures’ report on correspondent banking.
The deadline for comments on the proposed revisions is 22 February 2017.
View Proposals clarify rules on combating money laundering and terrorist financing in correspondent banking, 23 November 2016