Correspondent banking carries unique AML risks due to indirect customer exposure, creating layered risk and reliance on respondent banks’ controls. Its structures, such as Nostro/Vostro accounts, payable-through accounts, and nested relationships, add complexity and reduce transparency. High transaction volumes, cross-border flows, and differing regulatory standards make it a high-risk area for money laundering and sanctions evasion.

This module also covers key regulatory frameworks, including guidance from RBI, common failures, which reiterate strong due diligence, ongoing monitoring, and robust governance. Challenges such as de-risking, weak controls, and failure to identify red flags have resulted in significant global enforcement actions.

To mitigate risks and prevent misuse of correspondent banking channels, the above understanding is of immense importance

About the Trainer

Sharad Nair

Empaneled Trainer

A Banking professional with an experience of over 30 years in various aspects of Branch Banking and other areas such as heading credit & forex, heading learning and development in the retail space and heading AML compliance of the third largest private sector Bank in the country and a national bank in UAE. Have a successful track record of working in Banks in India and UAE.