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
