The Basel Committee on Banking Supervision on Wednesday published proposals that aim to give banks more clarity on how to best manage risks related to money laundering and terrorism financing.
Among other things, the draft revisions aim to ensure that banks conduct correspondent banking business with the best possible understanding of the applicable rules on anti-money laundering and countering the financing of terrorism.
“The proposed revisions develop the application of the risk-based approach for correspondent banking relationships, recognizing that not all correspondent banking relationships bear the same level of risk,” the Basel Committee report says.
The proposals follow new guidance on correspondent banking from the Financial Action Task Force (FATF) that was published in October, and aims to ensure consistency with the FATF standards.
Comments on the proposals are due by Feb. 22, 2017.