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Correspondent Banking Due Diligence

Correspondent Banking Due Diligence

  • by EB 22 Apr, 2020
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Publication type Guidance material
Language English
Publication date 17.04.2020
Number of pages 20, 12

The Wolfsberg Group is pleased to announce the release of version 1.3 of the Correspondent Banking Due Diligence Questionnaire (CBDDQ) along with updated supporting FAQs, Completion Guidance and Capacity Building Guidance.

The Wolfsberg Group has published a series of materials supporting the implementation of the updated Correspondent Banking Due Diligence Questionnaire (CBDDQ). These materials have been designed to aid ‘capacity building’ in the industry, as well as support the objectives of the G20 and other supranational organisations towards a well supervised and more harmonised regulatory standard in correspondent banking. The Wolfsberg Group expects that these materials will be very useful to public sector entities as they work with banks and countries looking to enhance their own financial crime compliance programs, as well as to banks and other financial institutions for their own training needs.

The CBDDQ aims to set an enhanced and reasonable standard for cross-border and/or other higher risk Correspondent Banking Due Diligence, reducing to a minimum any additional data requirements, as per the Wolfsberg definition and current FATF Guidance. It is also the Group’s expectation that the Group members will begin to use the CBDDQ, in a phased approach, with all of their respondents.

In the long term, it is the Group’s view that the adoption of a standardised, reasonable CBDDQ should engender a less arduous, and thereby inherently less costly, due diligence process for Correspondent Banks, which, as it beds down, should also allow for a standard which all Financial Institutions, and their supervisors, can work towards achieving. This should, in the end, support the objectives of the G20 and other supranational organisations towards a well supervised and more harmonised regulatory standard in the correspondent banking space, with longer term positive effects on de-risking, access to finance, the development of trade and financial inclusion.

The Group is also conscious that its original questionnaire has been used in multiple other customer type due diligence scenarios and, therefore, while not seeking to prescribe how, or for which customer types, the questionnaire should be used, the Group has nonetheless issued the Wolfsberg Group Financial Crime Questionnaire (FCCQ) which is a shorter version of the CBDDQ and contains a basic set of questions to address Industry demand.


Read the Wolfsberg Group „Correspondent Banking Due Diligence Questionnaire”

See also the Wolfsberg Sanctions Screening Guidance

Source:
1. The Wolfsberg Group, Correspondent Banking Due Diligence Questionnaire (CBDDQ), Completion Guidance, Frequently Asked Questions (FAQs) and Glossary (17.04.2020),
2. The Wolfsberg Group, Wolfsberg CBDDQ (17.04.2020).

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