Countries grappling with the withdrawal of correspondent banking relationships must work to improve their anti-money laundering (AML) and counter-terrorist financing (CTF) regimes, a U.S. Treasury boss has warned.
Acting undersecretary Adam Szubin said that some countries “lagged behind” in implementing global standards on regulation and had failed to implement adequate systems to counter illicit financing.
Szubin told an AML enforcement conference in Washington, D.C. that major financial firms were cutting correspondent links for several reasons, including decreasing profit margins and the rising threat of enforcement action — particularly since the financial crisis.
Request a Free Trial
As a trusted source of regulatory intelligence for the global payments industry, we enable organisations to manage the growing volume and velocity of regulatory risk with confidence, empowering more informed and effective decision making, in an efficient and cost-effective way.Take a Trial