THE ARAB MONETARY FUND, THE INTERNATIONAL MONETARY FUND, AND THE WORLD BANK LAUNCH THE SECOND REPORT ON THE DECLINE OF CORRESPONDENT BANKING RELATIONS WITH BANKS AND FINANCIAL INSTITUTIONS IN THE ARAB COUNTRIES

by **claud39** Wed Feb 13, 2019 8:41 am

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THE ARAB MONETARY FUND, THE INTERNATIONAL MONETARY FUND, AND THE WORLD BANK LAUNCH THE SECOND REPORT ON THE DECLINE OF CORRESPONDENT BANKING RELATIONS WITH BANKS AND FINANCIAL INSTITUTIONS IN THE ARAB COUNTRIES

2019-02-13

The Arab Monetary Fund, the International Monetary Fund and the World Bank are pleased to announce the launch of the second report on the relationships of correspondent banks with banks and financial institutions in the Arab countries.

The report, which is the result of continuous cooperation and coordination between the Arab Monetary Fund, the International Monetary Fund and the World Bank, as well as central banks and Arab monetary institutions, summarizes the results of the questionnaire that was prepared and distributed to banks in the Arab countries during 2018. The report focuses on the scope, Of the possible decline in the relationships of correspondent banks worldwide to banks operating in the Arab countries, in addition to testing the effectiveness of the proposed solutions.

The preparation of this questionnaire follows the recommendation of the second high-level regional workshop on the reduction of the correspondent banking relationships with banks and financial institutions in Arab countries organized by the Arab Monetary Fund and the International Monetary Fund in cooperation with the Financial Stability Council and the World Bank Group in Abu Dhabi on 17 September 2017, The participants highlighted the need to continue to deal with related parties in monitoring the consequences of the possible decline in the relationships of correspondent banks worldwide to banks operating in the Arab countries and the search for solutions.

The report shows that about one-third of responding banks have seen a decline in their accounts with global correspondent banks since 2012, and that the average number of accounts closed or inactive or restricted annually increased slightly in 2016-2017. Compared to the past few years.

In the same vein, the report presents some views on solutions that would help mitigate the consequences of declining relationships or close accounts with global correspondent banks, including strengthening private sector efforts to seek alternative correspondent banks or expand existing correspondent banks, Direct dialogue with correspondent banks, improve compliance with AML / CFT requirements, and strengthen efforts to regulate and supervise the implementation of AML / CFT, in accordance with the requirements of international regulators and standards.

The Arab Monetary Fund, the International Monetary Fund and the World Bank Group confirm their willingness to support additional efforts in addressing issues related to correspondent banking relations in Arab countries in cooperation with central banks and Arab monetary institutions, in line with the functions and experience of these institutions.

An electronic version of the report is available on the websites of the Arab Monetary Fund, /[term]/[language]/CBR survey for Arab countries_2019 for publication.pdf]www.amf.org.ae , and the International Monetary Fund ; www.imf.org and the World Bank www.worldbank.org .