Efforts in Reducing the Negative Impact of Loss of Correspondent Banking Relationships in The Caribbean


The objective of the training is to address, from a practical standpoint, the risk of losing correspondent banking relationships (the de-risking phenomenon) in the Caribbean region, from the perspective of the Bank Supervisors and the Correspondent Banks. In addition, answer questions such as:

  1.  What do supervisors look for at the time of analyzing geographic and services risks in Caribbean countries?
  2.  What are the financial or compliance risks in the region?
  3.  Of the risks identified, which are those that play a significant role in triggering de-risking actions?
  4.  What are the elements that correspondent banks look for to establish a sustainable correspondent banking relationship?
  5.  Why should Correspondent Banks assess the AML/CFT risks of its correspondent institutions and the region’s clients?

The course also seeks to generate awareness about the current challenges in the Caribbean, in both Regulatory and Supervisory Authorities and Financial Institutions, and the identified weaknesses related to the de-risking phenomenon.

The Association of Supervisors of Banks of the Americas and the Central Bank of The Bahamas, with the support of the Inter-American Development Bank Lab and the Caribbean Development Bank held the “Inaugural Global Research Conference on Empirical Approaches to Anti-Money Laundering (AML) & Financial Crime ” that took place from January 22 nd to 23 rd , 2020 in Nassau Bahamas.

This conference was intended to provide a forum for the world’s leading academic and applied researchers, in areas relevant to data-driven approaches to suppressing financial crime. We were pleased to note that the support of the authors for the inaugural conference was excellent, since there were 18 selected articles from more than 30 participants. These documents were provided from the five continents and represented a good dissemination of academic thought, from multilateral, regulatory and professional organizations.

The conference was divided into panels with the objective of analyzing central and current issues related to De-Risking:

  • Session 1: It’s all about the Data
  • Session 2: The Caribbean Story
  • Session 3: Economic Impacts from the Global AML Architecture
  • Session 4: AML Jurisdiction Ratings and Rankings
  • Session 5: Perspectives on De-Risking
  • Session 6: Using Empirics to assess risk