The Committee on Payments and Market Infrastructures (CPMI) has published the final version of its report on correspondent banking. The aim of the technical report is to elaborate on the payment system aspects of correspondent banking and to assess, from a technical perspective, the advantages and limitations of several measures that could facilitate the provision of correspondent banking services.
The report outlines the main types of correspondent banking arrangement, summarises recent developments from qualitative and quantitative perspectives and identifies underlying drivers. The report also sets out five recommendations on certain measures that might alleviate some of the concerns and cost issues relating to correspondent banking. Among other things, the recommendations relate to the use of “know your customer” utilities and the use of the legal entity identifier in correspondent banking.
CPMI states that before the report’s measures are implemented they should be analysed by all relevant authorities and stakeholders in order to gauge their potential impact and avoid any unintended consequences.
View CPMI final report on correspondent banking, 13 July 2016