Banking arrangements that allow foreign banks to provide their clients access to the domestic banking system of another country, enabling customers to perform transactions such as deposits and withdrawals through the domestic institution’s infrastructure.
Main/
Payable-Through Accounts
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Code
PS0054
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Name
Payable-Through Accounts
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Version
1.0
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Category
Deposit & Account Services
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Created
2025-03-14
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Modified
2025-04-02
Related Techniques
- Allow foreign bank clients direct access to a correspondent bank’s infrastructure, bypassing stricter due diligence requirements.
- If the respondent bank fails to identify or monitor ultimate beneficiaries properly, criminals can move illicit funds internationally under the correspondent bank’s umbrella with minimal scrutiny.
- Criminals gain indirect local banking access in another jurisdiction without full customer due diligence.
- They exploit the reduced scrutiny on foreign account holders, using layered cross-border transfers to mask the origin and reduce transparency in the payment chain.
- Allow foreign banks’ customers direct use of a domestic correspondent account, circumventing typical host-bank due diligence.
- Sanctioned actors exploit these accounts to access the global financial system indirectly.