Our Blog

Latest news and updates from flathost

Correspondent Bank Agreement

Posted byadminon06 12 2020. 0 Comments

Deutsche Bank SA has agreed to pay $95 million to settle a U.S. government complaint accusing the German bank of tax evasion for using “insolvent” shell companies in 2000 to hide large tax debts from the Internal Revenue Service. Under the agreement, described in documents filed Wednesday in Manhattan federal court, Deutsche Bank also admitted to trying to fix Shell companies with the tax bill for their new stake in drug maker Bristol-Myers Squibb Co. The transaction resolves a complaint filed in December 2014 that attempted to recover more than $190 million in taxes, penalties and interest. “Through this action and agreement, the government has asked Deutsche Bank to take tax evasion measures,” U.S. Attorney General Preet Bharara said in Manhattan in a statement. Deutsche Bank spokeswoman Amanda Williams said in a statement: “We are pleased to resolve this claim and leave these events of more than 16 years ago behind us. The Financial Stability Board (FSB) is working closely with the World Bank to analyze the impact on financial inclusion of the reduction in correspondent relationships. In this context, the FSB President`s letter to the G20 dated 9 April 2015 states that ” […] The FSB has agreed on a work plan that will discuss, in collaboration with the World Bank and other relevant authorities, the extent of the possible withdrawal of the activities of the corresponding bank, its impact on financial exclusion and the measures to be taken to resolve this problem. Most international transfers are made through the Interbank Financial Telecommunications Corporation (SWIFT) network. Knowing that there is no working relationship with the target bank, the original bank can search the SWIFT network for a corresponding bank that has agreements with both banks. After the search for a corresponding bank that has entered into agreements with both parties of the transfer, the original bank sends the money transferred to its Nostro account to the corresponding Bank.

1.Ensure that the AML/CFT guidelines and procedures are reviewed and adapted at least once a year to address new risks associated with correspondence banks.

Comments are closed.