BAFT and IIF File Joint Comment Letter on BCBS Correspondent Banking Consultation

by User Not Found | Feb 23, 2017
BAFT jointly with the Institute for International Finance (IIF) submitted a comment letter to the Basel Committee on Banking Supervision (BCBS) on its proposed revisions to the guidance on the Sound management of risks related to money laundering and financing of terrorism.
BAFT jointly with the Institute for International Finance (IIF) submitted a comment letter to the Basel Committee on Banking Supervision (BCBS) on its proposed revisions to the guidance on the Sound management of risks related to money laundering and financing of terrorism. In the February 22, 2017 letter, BAFT and the IIF applauded certain proposed revisions and requested the reconsideration of others. Specifically, the associations encouraged the BCBS to adopt the Wolfsberg definition of correspondent banking and to acknowledge that not all correspondent banking services and not all cross-border correspondent banking relationships are high risk. BAFT and the IIF also cautioned the BCBS against revisions that may inadvertently further de-risking activity, such as guidance that is overly prescriptive or establishes an expectation that a correspondent must conduct due diligence on a respondent’s customers. Finally, the associations noted the conditions necessary for KYC utilities to achieve reduced costs and increased efficiencies at account opening and during the course of the correspondent relationship. The joint letter, which is the product of extensive collaboration between the two associations and member input, may be found here.


            BAFT, the leading global financial services association for international transaction banking, helps bridge solutions across financial institutions, service providers and the regulatory community that promote sound financial practices enabling innovation, efficiency, and commercial growth. BAFT engages on a wide range of topics affecting transaction banking, including trade finance, payments, and compliance. The association website is www.baft.org.