Last Correspondent Bank Clearing Us Dollars For Bov To Cut Ties Come December

“Bank of Valletta plc has intensified its endeavours to engage alternative correspondents to minimise any possible operational disruption to its business and its clients," it said in a statement.

The last correspondent bank to clear US dollar transactions for Bank of Valletta will be ending its relationship with the local bank come December.

BOV made the announcement in a short statement on Monday morning, saying that ING, a Dutch bank, will stop clearing US dollar transactions for BOV as of 14th December.

“Bank of Valletta plc has intensified its endeavours to engage alternative correspondents to minimise any possible operational disruption to its business and its clients,” BOV said in a statement. 

A 'de-risking' exercise is reportedly being carried out by the Dutch bank which includes severing ties with banks in small jurisdictions due to the perceived risk. Financial institutions all over the world have over the past few years followed this path as clearing transactions for small jurisdictions continues to be perceived as high risk especially when factoring the benefits gained by those same institutions.

ING is no stranger to money-laundering issues after it was slapped with a fine by the EU worth some €775 million in September 2018 after being forced to admit that their services were being used by criminals.

Deutsche Bank, which was also providing US dollar clearing services, has already been lost to BOV around two years ago.

 

 

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