Version status: In force | Document consolidation status: Updated to reflect all known changes
Version date: 26 November 2018 - onwards
  Version 3 of 3    

38. Enhanced customer due diligence - correspondent banking relationships.

(1) A credit institution or financial institution ('the institution') shall not enter into a correspondent relationship with another credit institution or financial institution ('the respondent institution') situated in a place other than a Member State unless, prior to commencing the relationship, the institution -

(a) has gathered sufficient information about the respondent institution to understand fully the nature of the business of the respondent institution,

(b) is satisfied on reasonable grounds, based on publicly available information, that the reputation of the respondent institution, and the quality of supervision or monitoring of the operation of the respondent institution in the place, are sound,

(c) is satisfied on reasonable grounds, having assessed the anti-money laundering and anti-terrorist financing controls applied by the respondent institution, that those controls are sound,

(d) has ensured that approval has been obtained from the senior management of the institutio