The Committee on Payments and Market Infrastructures (CPMI) has published a consultative report on correspondent banking. The report sets out some basic definitions, outlines the main types of correspondent banking arrangement, summarises recent developments and touches on the underlying drivers. The report also reviews certain technical measures relating to:

  • know your customer (KYC) utilities;
  • the increased use of the Legal Entity Identifier;
  • information-sharing mechanisms; and
  • improvements in payment messages.

The review sets out recommendations on the above technical measures. In particular, the report states that KYC utilities in general – provided that they store at least a minimum set of up-to-date and accurate information – can be supported as an effective means to reduce the burden of compliance with some KYC procedures for banks active in correspondent banking business. Relevant stakeholders (e.g. the Wolfsberg Group) may review the templates and procedures used by the different utilities and identify the most appropriate data fields to compile a data set that all utilities should collect as best practice and that all banks have to be ready to provide to banks which require the information.

The deadline for comments on the consultative report is 7 December 2015.

View Correspondent banking – consultative report, 6 October 2015