Dear {{lead.First Name:default=GTNews Subscriber}},

Through correspondent banking relationships, firms can access financial services in different jurisdictions. These banks provide international payment services, which is critically important as it facilitates international trade, financial inclusion and prevents payment flows from moving underground.

However, correspondent banking is in steep decline, writes Steve Mann of Arachnys.

“Rather than being viewed through a “value” lens, it’s seen primarily as a high-risk proposition due to profitability concerns, the liability associated with a correspondent account, and a lack of clarity on the degree of granularity Know Your Customer (KYC) profiles need to be to meet the regulatory requirements for anti-money laundering programs,” he says.

Read more on this topic here.

Kind regards,

Vicky Beckett

Editor, The Global Treasurer