Foreign bank uproar over AML rules
NEW YORK – US regulators now require US-based branches of foreign banks to maintain full documentation of their correspondent banking accounts, a requirement that affected banks say amounts to burdensome double-compliance.
Many banks operating in the US have most of their correspondent banking customer relationships managed out of their head offices abroad. Because of the way correspondent banking business works, the customers whose relationships are managed at the head office are permitted to use any of their banks' services in their US operations.
Accordingly, US-based branches get instructions for a specific service from a customer whose account is managed at the head office abroad, and the head office approves
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