HALISTER1: Banks Shouldn’t Rush to Dump Risky Overseas Customers, OCC Says

Banks Shouldn’t Rush to Dump Risky Overseas Customers, OCC Says

(Bloomberg) -- U.S. lenders looking to shed foreign correspondent accounts in countries with high money-laundering risks should be especially careful before cutting ties, the Office of the Comptroller of the Currency said Wednesday.
  • Analysis of risks should look at specific customers, and decisions should involve senior management, OCC said in bulletin outlining updated guidelines
  • Banks should weigh “potential international financial inclusion impacts”
  • Lenders advised to maintain clear audit trail of reasons for account closures
  • NOTE: Regulators have been criticized by foreign jurisdictions concerned they are cut off from U.S. financial system over bankers’ moves to limit Bank Secrecy Act vulnerability
  • EARLIER: U.S. Regulator Curry Urges Banks to Pump Brakes on Foreign Exits
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Source: BFW (Bloomberg First Word)

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