19 Nov 2018
Banks are increasingly stepping back from helping one another with international money transfers due to tougher money laundering checks, dealing a blow to countries that rely on remittances and potentially driving some payments underground.
The Financial Stability Board (FSB), which coordinates financial rules across the Group of 20 economies (G20), said on Friday that so-called correspondent banking continued to shrink last year, despite attempts by regulators to halt the decline.
Correspondent banking refers to a bank relying on a bank in another country to carry out checks on customers transferring money, such as remittances.
Banks are being put off from such tasks by the burden of stricter checks on customers, and tougher punishments on money laundering and terrorist financing.
– By Huw Jones, Reuters, 16 November 2018.
Link to Reuters.
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