This specialized course provides comprehensive training on the AML/CFT risks and compliance requirements associated with correspondent banking relationships. Participants will learn about the unique risks of correspondent banking, regulatory expectations for due diligence, and effective risk management strategies. The course covers both respondent and correspondent bank perspectives, including due diligence requirements, ongoing monitoring, and termination procedures. Through case studies and practical exercises, learners will develop the expertise needed to manage correspondent banking risks effectively.
Managing AML in Correspondent Banking Relationships
Anti-Money Laundering AML/CFT
October 25, 2025
Introduction
Objectives
Key Learning Objectives:
- Understand the unique AML/CFT risks in correspondent banking
- Master regulatory requirements for correspondent due diligence
- Learn risk assessment methodologies for correspondent relationships
- Develop skills in correspondent bank due diligence execution
- Understand ongoing monitoring requirements and techniques
- Learn to identify red flags in correspondent banking activities
- Master relationship termination and exit strategies
- Understand regulatory expectations for correspondent banking compliance
- Develop skills in managing cross-border correspondent risks
Target Audience
- Correspondent banking relationship managers
- AML/CFT compliance officers
- International banking professionals
- Risk management staff
- Legal and compliance counsel
- Payment operations personnel
- Audit and testing professionals
- Regulatory agency staff
Methodology
- Case studies of correspondent banking failures
- Due diligence documentation exercises
- Risk assessment workshops
- Red flag identification simulations
- Regulatory requirement analysis
- Relationship management role-playing
- Industry expert presentations
Personal Impact
- Enhanced understanding of correspondent banking risks
- Improved due diligence and risk assessment skills
- Stronger regulatory interpretation abilities
- Better relationship management capabilities
- Increased confidence in correspondent banking compliance
- Career development in international banking compliance
Organizational Impact
- Reduced correspondent banking compliance risks
- Enhanced regulatory compliance and examination readiness
- More effective risk management of correspondent relationships
- Improved due diligence and monitoring processes
- Stronger governance and oversight framework
- Better strategic decision-making for correspondent banking
Course Outline
Unit 1: Correspondent Banking Fundamentals
Business Overview- Correspondent banking definition and services
- Nostro and vostro account relationships
- Payment and settlement flows
- Business models and revenue considerations
- Unique correspondent banking risks
- Shell bank and nested account risks
- High-risk jurisdiction exposures
- Regulatory enforcement case studies
Unit 2: Regulatory Framework and Requirements
Global Standards- FATF correspondent banking recommendations
- US Patriot Act Section 312 requirements
- EU and other jurisdictional requirements
- Wolfsberg Correspondent Banking Principles
- Enhanced due diligence requirements
- Ownership and management information
- AML/CFT program assessment
- Regulatory and supervisory review
Unit 3: Risk Assessment and Due Diligence
Risk Assessment Methodology- Respondent bank risk scoring
- Country and geographic risk assessment
- Product and service risk analysis
- Volume and transaction pattern risks
- Documentation requirements
- On-site visits and reviews
- Third-party information validation
- Senior management approval processes
Unit 4: Ongoing Monitoring and Controls
Transaction Monitoring- Correspondent activity monitoring
- Red flag identification and investigation
- Periodic review requirements
- Trigger events and re-assessment
- Account usage restrictions
- Transaction limit setting
- Payment message screening
- Exception handling procedures
Unit 5: Program Management and Governance
Compliance Program- Policies and procedures development
- Training and awareness programs
- Management oversight and reporting
- Independent testing and audit
- Relationship exit strategies
- De-risking impacts and alternatives
- Industry collaboration initiatives
- Emerging trends and future outlook
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