RiskTech Forum

Accuity: Derisking and the Demise of Correspondent Banking Relationships

Posted: 1 October 2017  |  Source: Accuity


Correspondent banking is the cornerstone of the global payment system, designed to serve the settlement of financial transactions across country borders. It allows companies and individuals to safely move money around the world and supports and encourages global trade.

Since the financial crisis, tighter regulations - and in particular the regulatory penalties imposed for violations of anti-money laundering (AML) – have caused western banks to rethink their global strategy. The risks of doing business in many developing nations are beginning to be seen as outweighing the financial benefits brought by correspondent banking activity. As a result, US and European banks have reduced their correspondent banking activity in the riskiest regions.

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