By TCH Research
The Clearing House Association released an Exposure Draft of its Guiding Principles for Anti-Money Laundering Policies and Procedures in Correspondent Banking. The guiding principles are intended to build upon U.S. banks’ existing AML and sanctions compliance programs and to assist U.S. banks in the continuing redesign and development of comprehensive due diligence programs to identify and manage particular AML and sanctions risks. Some of the areas covered by the AML and correspondent banking guiding principles include: (i) establishment of foreign correspondent banking accounts, including due diligence and enhanced due diligence; (ii) risk assessment of foreign correspondent banking customers; (iii) identification and reporting of suspicious activity; (iv) increased transparency for cross-border payments; (v) sanctions compliance; (vi) information sharing; and (vii) government requests for information. Comments can be submitted no later than October 31, 2014 at firstname.lastname@example.org.