9. Additional AML/CFT measures for specific activities of financial institutions

KEY QUESTIONS

•What should financial institutions be required to perform in addition to normal CDD measures when they establish cross-border correspondent banking and other similar relationships?

•How can a financial institution determine the reputation of a counterpart in a cross-border correspondent banking relationship?

•Define payable-through accounts in relation to cross-border correspondent banking relationships.

•List the main parties of a wire transfer.

•What does the intermediary financial institution do in a wire transfer?

•Give the definition of a cover payment in relation to a wire transfer.

•What are the responsibilities of a beneficiary financial institution involved in a wire transfer?

•Define straight-through processing in relation to a wire transfer.

•Give the definition of a batch transfer in relation to a wire transfer.

•What is the difference between a cross-border wire transfer and a qualifying wire transfer?

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•Where can the system used to transfer the payment message of a domestic wire transfer be located? Why?

•In which way can domestic wire transfers be designated a supra-national jurisdiction? Give an example.

•List three objectives of applying AML/CFT measures to wire transfers.

•What information are financial institutions required to gather on the originator of any wire transfer?

•What information should contain the customer identification number of the originator of a qualifying cross-border wire transfer?

•What are the responsibilities of the ordering financial institution in a wire transfer?

•List the obligations of the intermediary financial institution in a wire transfer.

•What is common in responsibilities of the intermediary financial institution and the beneficiary financial institution in a wire transfer?

•Which procedure should the beneficiary financial institution, in a qualifying cross-border wire transfer, perform toward the beneficiary?

•Define money or value transfer services.

•Should separate licensing for money or value transfer services be imposed on financial institutions that are already licensed as banks and provide such services? Why?

•Why should competent authorities be granted access to the list of money or value transfer services provider’s agents?

•What information about its agents should money or value transfer services provider maintain?

•Give an example of a money or value transfer service provider being linked to terrorist financing.

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9.1. AML/CFT requirements for cross-border correspondent banking relationships