Academic Scientific JournalsCorrespondent relationship of credit institutions vis-à-vis money laundering and terrorist financing
Keywords:
AML, correspondent and respondent banks, correspondent bankingAbstract
This paper deals with the legal relationship between correspondent and respondent banks as part of a correspondent transaction. At the same time, the author analyses the performance of the due diligence on the respondent bank. In the last chapter, the author reflects on the existing application problems, supporting the currently growing trend of decreasing the number of new correspondent relationships. The primary objective of this paper is to establish, through comprehensive research on the existing legal regulation of correspondence relations at the European Union and Slovak Republic levels, a hypothesis regarding the interdependence between current application problems and the diminishing trend observed in new correspondence relations. Following scientific methods were used in this paper: the method of analysis and synthesis, method of abstraction, comparative method.
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References
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Legal Acts
Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Regulation (EU) No 648/2012 of the European Parliament and of the Council, and repealing Directive 2005/60/EC of the European Parliament and of the Council and Commission Directive 2006/70/EC.
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Zákon č. 297/2008 Z. z. o ochrane pred legalizáciou príjmov z trestnej činnosti a o ochrane pred financovaním terorizmu a o zmene a doplnení niektorých zákonov [Act No 297/2008 Coll, Money Laundering and Terrorist Financing Regulation, amending and supplementing certain acts].
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Usmernenie k rizikovým faktorom spojeným so vzťahmi s klientmi a s príležitostnými platobnými operáciami, časť 2 a 3 metodického usmernenia Národnej banky Slovenska, útvarov dohľadu nad finančným trhom z 29. apríla 2019 č. 3/2019 k ochrane banky a pobočky zahraničnej banky pred legalizáciou príjmov z trestnej činnosti a pred financovaním terorizmu [Guidelines to Mitigate Money Laundering and Terrorist Financing Risk Factors’, Part 2 and 3 of the Methodological Guideline of the National Bank of Slovakia, Financial Market Supervision Units No 3/2019 of 29 April 2019 on the protection of a bank and a branch of a foreign bank against the legalization of proceeds from crime and against the financing of terrorism]. Internet Resources Correspondent Banking Due Diligence Questionnaire (CBDDQ) Available at: https://www.wolfsbergprinciples.com/sites/default/files/wb/CBDDQ_V1.3_SC09_Final_Version_16APR20 20.pdf, accessed: 1st March 2023.
FATF clarifies risk-based approach: case-by-case, not wholesale de-risking. Available at: https://www.fatf-gafi.org/en/publications/Fatfgeneral/Rba-and-de-risking.html, accessed: 15th March 2023.
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