Circular
Interagency Guidance on Transparency and Compliance in Cross-Border Funds Transfers
January 8, 2010
Circular No. 12175

The Federal Reserve, together with the Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency, Office of Thrift Supervision and National Credit Union Administration, has issued interagency guidance on “Transparency and Compliance for U.S. Banking Organizations Conducting Cross-Border Funds Transfers.”

The interagency guidance references a paper issued by the Basel Committee on Banking Supervision in May 2009, entitled “Due diligence and transparency regarding cover payment messages related to cross-border wire transfers.”

The interagency guidance clarifies the U.S. federal banking supervisors’ perspective on certain points in the Basel Committee paper, including expectations for intermediary banks on Office of Foreign Assets Control sanctions screening and transaction monitoring to comply with Bank Secrecy Act/anti-money laundering requirements. In addition, it discusses the banking supervisors’ approach to reviewing institutions’ risk management practices with respect to cross-border funds transfers, including cover payments.

See press release for full details.

Press release pdf offsite