Despite the loss of these relationships, on 21 July 2017 Moody's confirmed BAI's long-term ratings, given its demonstrated capacity to continue to meet its dollar obligations by preserving some of its dollar
correspondent bank relationships, and by using other foreign currencies as an alternative route to complete dollar transactions.
Due diligence costs a lot of money just to assess every bank transaction and for this reason some international
correspondent banks prefer sometimes not to deal with some banks that are based in risky countries," he added.
Samar Baasiri, head of compliance unit at BankMed said
correspondent banks relied on the local banks' due diligence.
It is therefore possible that some transactions associated with Bitcoin may be rejected by Emirates NBD or as a result of rejections by other domestic or international
correspondent banks.
Bankers noted that most small- and medium-size Arab banks are unable to transfer funds or conduct proper financial transactions with American
correspondent banks.
Using the Registry enables
correspondent banks and funds players to align themselves with global best practices, demonstrate transparency, reduce due diligence costs for their counterparties, and protect their correspondent relationships, Swift said.
The UAB explained that this forum will shed light on the key challenges that are currently facing Arab and
correspondent banks as a consequence of strictly enforcing the application of global regulatory standards, economic and trade sanctions, and the mechanisms of Prudential Regulatory Procedures and Sound Practices in Risk Management.
The SWIFT lines were taken down by the statutory manager only when there was an attempt by the special administrator to have FBME deposits held by
correspondent banks abroad moved to the Central Bank of Cyprus.
Bankers say all banks in the UAE will be forced to comply as they must rely on US
correspondent banks to clear dollar denominated transactions.
S unjust embargo on Sudan, the Sudanese banks have expanded and their activities and strengthened their relations with
correspondent banks abroad.
