From the Regulators

Revisions aim to respond to growing concerns that financial institutions are exiting correspondent banking

By James Langton |

The Basel Committee on Banking Supervision on Wednesday issued updated guidance that aims to provide banks with greater clarity on how to manage certain risks associated with anti-money laundering (AML) rules.

"The revisions aim to ensure that banks conduct correspondent banking business with the best possible understanding of the applicable rules," the Basel Committee says in a statement.

Among other things, the revised guidance includes a list of risk indicators that banks should consider in assessing the risks of money laundering and terrorist financing associated with correspondent banking.

The regulators note that the added guidance aims to respond to growing concerns in the international community that financial institutions are exiting correspondent banking to avoid these risks, which may, in turn, disrupt international payments in entire regions.