Correspondent account

From Wikipedia, the free encyclopedia

A correspondent account is an account established by a domestic banking institution to receive deposits from, make payments on behalf of, or handle other financial transactions for a foreign financial institution. This allows foreign banks to conduct business and provide services to their clients without the expense of a physical presence.

"Correspondent banking is also known as a relationship entered into between a small bank and a big bank in which the big bank provides a number of deposit, lending, and other services."^[1]

[edit] References

• Title III, Section 311 (e)(1)(B), USA PATRIOT Act
• 31 U.S.C. § 5318A(e)(1)(B)

1. ^ Financial Institutions Management 5th edition, Anthony Saunders and Marcia Millon Cornet, page 790.

[edit] External links

• Compliance Headquarters about correspondent banking