30 August 2022  

Three Type of Sanctions – In a Nutshell

Types of Sanctions
Comprehensive Sanctions: These types of sanctions are usually applied to countries.
They prohibit institutions from dealing with certain countries, however, some exceptions concerning humanitarian aid may take place.
Sectoral Sanctions: Under this type of sanction, dealing with a country in a specific sector is prohibited, i.e. energy, petroleum, arms, etc.
However, it is permissible to deal with the targeted state in other sectors.
Targeted Sanctions: This type of sanction usually applies to individuals, entities, and groups, due to committing acts related to Money Laundering or Terrorism Financing.
 
06 July 2022  

CBI & RBI – In a Nutshell

CBI & RBI
“Citizenship by Investment” (CBI) and “Residence by Investment” (RBI) schemes are offered by a number of jurisdictions to foreign individuals wishing to obtain a citizenship or residence on the basis of local investments or against a flat fee.
CBI/RBI can be misused to undermine the Common Reporting Standard (CRS).
This occurs when a customer claims to be resident for tax purposes of the CBI/RBI jurisdiction to a Bank, instead of his/her real jurisdiction.
He/she can provide the Bank with supporting documentation issued under the CBI/RBI scheme, such as “certificate of residence”, or “passport”.

#compliance #bankingindustry #crs #inanutshellbymj #marijosamneh

29 June 2022  

Payable Through Account – by Marijo Samneh

Payable Through Account (PTA) – In a Nutshell

In some correspondent relationships, the respondent bank’s customers are permitted to conduct their own transactions, directly with the correspondent bank, without clearing these transactions through the respondent bank. These arrangements are called Payable Through Accounts (PTA)

PTA activities are very High Risk Correspondent Services that requires strengthened Due Diligence and Compliance monitoring. Banks that have an AML program will not permit these types of practices.

However, banks still want to make sure that other banks they deal with do not offer it. They can get confirmation of this via a yes/no question on their AML questionnaire.

#bankingindustry #aml #compliance #inanutshellbymj #marijosamneh
24 June 2022  

Nostro v/S Vostro Accounts

Nostro v/s Vostro accounts – In a Nutshell

In the correspondent banking relationships, banks can have “Nostro” or “Vostro” Accounts.
Let’s say Bank A and Bank B want to establish a correspondent banking relationship together.
In this example I work at Bank A and you work at Bank B.
Vostro Account: Vostro refers to your money (Bank B) deposited at my bank (Bank A). If you get lost replace the word “Vostro” by “Votre” in French which means “Yours”.
Nostro Account: Nostro refers to our money (Bank A) deposited at your Bank (Bank B). If you get lost replace the word “Nostro” by “Notre” in French which means “Ours”.

#bankingindustry #aml #compliance #marijosamneh #inanutshellbymj