Basel Committee Clarifies Guidance on Countering Money Laundering and Terrorism Financing in Correspondent Banking

Guidelines on Sound management of risks related to money laundering and financing of terrorism

Snapshot Update

June 7, 2017

Today the Bank for International Settlements’ Basel Committee on Banking Supervision (BCBS) issued “Guidelines on Sound management of risks related to money laundering and financing of terrorism” (the “Guidelines”). The Guidelines were issued “to describe how banks should include money laundering (ML) and financing of terrorism (FT) risks within their overall risk management.”

With respect to foreign correspondent banking, the Guidelines’ clarifications are designed to respond to the withdrawal of correspondent banking relationships (derisking) that have adversely affected banks and, in some cases, entire regions. Accordingly, Annex 2 of the Guidelines includes a list of risk factors that “correspondent banks should consider in their risk assessment of money laundering and financing of terrorism associated with correspondent banking.”

The Guidelines are available here and the related BCBS is here.


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