Correspondent banking enables individuals and corporates to access financial products and services across the globe. Complexities within correspondent banking including reliance on foreign banks and lack of direct contact between correspondent and parties involved makes this service vulnerable to be abused by criminals. Correspondent Banking masterclass is designed to enhance the knowledge of participants supported by real-life examples, case studies, scenarios and group exercises.
Learning Objectives
This masterclass will assist the participants to understand Correspondent Banking, its complexities and attractiveness to criminals, assessment of financial crime risks and best practices.
Course Outline
Correspondent banking masterclass is designed to ensure that participants learn theoretical as well as practical knowledge on performing a thorough risk assessment of correspondent banking clients through unwrapping various real-life case studies, understanding regulatory requirements and application of risk based approach.
Session 1
- Introduction
- Overview of correspondent banking
- Understanding definitions, key terms, and glossary (business model, Swift, national and supranational clearing systems, risk appetite statements, RFIs, etc)
- Key regulatory requirements & industry best practices
- Inherent risks within correspondent banking
Session 2
- Jurisdictional (Market) risk assessment
- Wolfsberg guidance on correspondent banking
- FATF principles and guidance on correspondent banking
- Unwrapping real life case study – identifying risky clients, situations, scenarios
Session 3
- MI used by correspondent banks (concentration risk assessment, peer benchmarking, etc)
- Cross jurisdictional exposure and legal implications
- High risk industry segments and appropriate due diligence
- Real life case study, what went wrong, how and why
Session 4
- Conducting due diligence and assessing risks of respondent relationships
- Transaction monitoring, building scenarios and risk assessment
- What a robust financial crime compliance programme looks like
- Real life case study
Note: All the delegates of a full day masterclass shall be required to sit a MCQ based test at the end of the session. Certificate of completion shall be issued to all those staff member who pass the exam (70% or more marks)
Course Format
Masterclass may be delivered virtually or in-house at client premises.