The primary supervisor of U.S. national banks will soon publish guidance "reiterating" how financial institutions can manage compliance risks posed by their foreign correspondent clients, the agency's chief said Wednesday. In the document, the Office of the Comptroller of the Currency (OCC) will recommend that compliance officers at global banks notify senior management before closing a correspondent account and, maintain "clear audit trails" justifying the decision and clarify the institution's process for reaching it, said U.S. Comptroller Thomas Curry. The process of regularly assessing risk represents "a critical and expected part" of Bank Secrecy Act and anti-money laundering (AML) compliance,...
Governments have yet to collect sufficient data to fully understand the reasons for and impact of a reported decline in correspondent banking services throughout the globe, a Basel-based organization said Friday.
Global financial institutions, regulatory agencies and industry groups should develop and adopt standardized know-your-customer requirements to reduce due diligence costs tied to correspondent transactions, central bankers said Wednesday.
An intergovernmental watchdog group is set to issue new guidance on cross-border transfers, virtual currencies and other categories of customers and transactions that many banks associate with high regulatory and legal risks.
In a rare gesture last week, a federal regulator signaled to banks that they might relax when it comes to implementing certain anti-money laundering policies. There was only one problem: no one is likely to listen.
A number of large U.S. and international banks are dropping customer accounts and services tied to high-risk geographical regions and lines of business in response to regulatory pressure, including enforcement actions.