Before entering into correspondent banking or any other similar relationship, financial institutions shall take the following measures:
Refrain from entering into or maintaining a correspondent banking relationship with Shell Banks or with an institution that allows their accounts to be used by Shell Banks.
Collect sufficient information about any receiving correspondent banking institution for the purpose of identifying and achieving a full understanding of the nature of its work, and to make available, through publicly available information, its reputation and level of control, including whether it has been investigated.
Evaluate anti-crime controls applied by the receiving institution.
Obtain approval from senior management before establishing new correspondent banking relationships.
Understand the responsibilities of each institution in the field of combatting Crime.
With respect to intermediate payment accounts, the financial institution should be required to ensure that the receiving institution has taken CDD measures towards Customers who have direct access to those accounts and that it is able to provide CDD information to the relevant Customers upon request of the correspondent institution.