Money Laundering Risks in Correspondent Banking
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Course Overview
Correspondent banking remains a critical component of the global financial system, but it continues to present heightened money laundering and terrorist financing risk due to cross-border activity, reliance on third parties, and the speed and volume of payments processing. This interactive half-day workshop is designed for senior compliance and financial crime professionals within UK-regulated financial services firms who are responsible for overseeing correspondent banking risk and engaging with regulators, auditors, and senior management.
The course examines how correspondent banking products and services can be exploited for financial crime and explores the specific risk drivers associated with respondent institutions, jurisdictions, products, and transaction flows. It focuses on how to apply international and UK good practice in a proportionate, risk-based manner, covering due diligence, ongoing monitoring, sanctions considerations, and governance.
Strong emphasis is placed on evidencing judgement, oversight, and control effectiveness. Participants will gain practical insight into how to assess the robustness of their correspondent banking arrangements and how to clearly demonstrate effective risk management to supervisors and stakeholders.
Learning outcomes
By the end of the session, participants will be able to:
Understand why correspondent banking presents heightened money laundering and terrorist financing risk
Identify key risk drivers associated with respondent institutions, jurisdictions, products, and payment flows
Apply a proportionate, risk-based approach to correspondent banking due diligence and onboarding
Assess the effectiveness of ongoing monitoring and transaction scrutiny for correspondent relationships
Understand how sanctions risk intersects with correspondent banking activity and controls
Evaluate governance, escalation, and senior management oversight arrangements
Evidence defensible decision-making and effective oversight to regulators, auditors, and Boards
Who this course is for
This workshop is designed for professionals with responsibility for correspondent banking and financial crime oversight, including:
Heads of Compliance and Financial Crime
MLROs and Deputy MLROs
Payments and Correspondent Banking Compliance specialists
Financial Crime and Sanctions professionals
Risk and Oversight Managers
Internal audit and assurance professionals
Senior managers accountable for AML and correspondent banking risk under SM&CR
The course is particularly relevant for UK-regulated firms involved in correspondent banking or cross-border payments that wish to strengthen control effectiveness and demonstrate robust, regulator-ready oversight.