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Can you summarize Expanded Examination Procedures For Products and Services > Funds Transfers?
Expanded Examination Procedures For Products and Services > Funds Transfers
Short Summary
This document provides an overview of funds transfers and aims to assess the adequacy of a bank’s systems in managing the associated risks. It focuses on the risks related to funds transfers and the bank’s ability to implement effective monitoring and reporting systems. Funds transfers involve the movement of funds between banks and financial institutions, both domestically and internationally. The document discusses various payment systems, including wholesale payment systems like Fedwire and CHIPS, as well as the use of SWIFT for international transactions. It also highlights the risks associated with cover payments, informal value transfer systems (IVTS), and payable upon proper identification (PUPID) transactions. The document emphasizes the importance of risk mitigation measures, such as sound policies, procedures, and processes, customer due diligence (CDD), and suspicious activity monitoring. It also mentions the need for effective management of correspondent banking relationships and compliance with regulatory requirements, including those related to transparency and cross-border funds transfers.
Whom does it apply to?
Banks and financial institutions involved in funds transfers
What does it govern?
Assess the adequacy of the banks systems to manage the risks associated with funds transfers, and managements ability to implement effective monitoring and reporting systems
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
U.S. Federal Government