Has there been a decline in correspondent banking relationships and how worrying is it? Tom Golding, MD of Risk and Compliance for Accuity, in his article with Fintech Finance, considers the implications of this decline and whether there are any steps that can be taken to reverse the trend. This decline in correspondent banking relationships comes with two big issues for the world’s economy: a limit on international payments which could negatively impact trade and the possibility of driving payments underground, destabilising financial systems. For Tom, this is an opportunity for a rebalancing act to take place.
His solution is tied in with a new offering from Bankers Almanac, which gives greater visibility on who is actually involved in the payments chain. Using data and information from both the risk and compliance and payments portfolios, which include financial counterparty KYC data and tools from Bankers Almanac, this new offering sheds light on sanctions risk, an area of compliance in which nested counterparties have previously resulted in reputational damage and loss of trust.