Correspondent Banking
/kəˌrɒrəspɒndənt ˈbæŋkɪŋ/
Definitions
- (n.) A banking arrangement where one bank provides services on behalf of another to facilitate international or cross-border payments and settlements.
The local bank opened a correspondent banking relationship to handle foreign currency transactions.
Forms
- correspondent banking
Related terms
See also
Commentary
Correspondent banking is essential for international finance, requiring compliance with AML and KYC regulations to mitigate risks.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.