Proposals to bar Iranian financial institutions from a global interbank messaging service would impose additional costs on Iran's banks without entirely blocking them from accessing Western financial institutions.
The rejection by the EU Parliament Thursday of a data sharing agreement with the United States is likely to leave U.S. investigators without timely access to European banking data for the second month in a row.
Banks should provide more detailed information on parties involved in cover payment transactions once a new interbank messaging system is implemented in the fall, according to an international banking committee.
For all of the concern over the money laundering risks associated with cover payments and cross-border transactions, there is a simple solution: more transparency, according to an anti-money laundering compliance director.
The U.S. Federal Reserve Bank and The Clearing House have told banks how to comply with new formatting procedures for cover payments wired internationally, the organizations said Monday.
The Belgian-based consortium plans to open the center by then end of 2009 as part of an effort to restructure how financial data is transmitted internationally.
The Bush administration suffered a setback Friday when a federal judge rejected its effort to block a civil lawsuit against an international banking consortium that provides the administration with data for terrorist investigations.
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