Upon completion of this program, participants will be able to:

• Analyze the structure and operational mechanisms of the traditional correspondent banking network.
• Identify and evaluate the key drivers and risks associated with **de-risking** in correspondent banking.
• Describe the regulatory requirements for **Anti-Money Laundering (AML)** and **CTF** in cross-border payments.
• Understand the strategic importance and implications of the shift to the **ISO 20022** messaging standard.
• Assess the potential of new technologies (e.g., DLT, CBDCs) to transform cross-border payments.
• Evaluate the risks (e.g., credit, liquidity, legal) in cross-currency settlement and Payment vs. Payment (PvP).
• Formulate risk mitigation strategies for correspondent banking relationships and compliance.
• Contribute to the implementation of global efforts to improve cross-border payments (e.g., G20 roadmap).

• Commercial Bank Payments, AML, and Correspondent Banking Officers
• Central Bank Payments System and Policy Analysts
• Compliance and Risk Management Professionals for Financial Crime
• FinTech and Payments Innovation Strategists
• Government Policy Makers on International Finance
• Internal Audit specializing in Financial Crime Compliance

AML/CTF compliance case studies, Group project on assessing de-risking impact, Technical workshops on ISO 20022 message structure, Policy debates on wholesale CBDC interlinking, Simulation of correspondent banking due diligence, Structured discussions on the G20 roadmap.

Unit 1: The Correspondent Banking System

• The role of the Nostro/Vostro account structure in traditional cross-border payments.
• The flow of funds and the role of the SWIFT network and payment messages.
• Identifying the layers of intermediary banks and the resulting costs and delays.
• The problem of pre-funding and the associated credit and liquidity risks.

• Defining **"de-risking"** (the termination of correspondent relationships) and its drivers (e.g., AML/CTF risk).
• The impact of de-risking on financial inclusion and access to the global financial system.
• Regulatory guidance on managing AML/CTF risk without excessive de-risking.
• Alternative models for maintaining financial connectivity (e.g., aggregation services).

Unit 2: Risk and Regulatory Compliance

• The role of international standards (e.g., FATF recommendations) in cross-border payments.
• Requirements for enhanced due diligence (EDD) and "Know Your Correspondent" (**KYCC**).
• Sanctions screening and the operational challenge of real-time monitoring.
• Best practices for managing "nested" and "pass-through" correspondent relationships.

• Settlement risk in cross-currency transactions (Herstatt risk).
• The role of multilateral clearing services (e.g., CLS) in mitigating Payment vs. Payment (PvP) risk.
• The legal and operational challenges of ensuring finality in cross-border settlement.
• Managing the liquidity needs for cross-currency settlement.

Unit 3: Modernization and Innovation

• In-depth analysis of the shift to **ISO 20022** and its benefits (richer data, interoperability).
• Innovations in correspondent banking (e.g., gpi, API-based platforms).
• The potential of Distributed Ledger Technology (DLT) for direct cross-border settlement.
• Assessing the benefits of pre-validation and fraud detection tools.

• The potential for **wholesale Central Bank Digital Currencies (CBDCs)** to transform cross-border payments.
• Models for interlinking CBDCs (e.g., bridge models, compatible single-system models).
• Policy challenges: managing foreign exchange regimes and monetary sovereignty in a CBDC world.
• Global initiatives (e.g., Project Dunbar, BIS Innovation Hub) to improve cross-border payments.