The Londoner

Payable Through Accounts (PTAs) can introduce certain Anti-Money Laundering (AML) risks due to their nature as conduits for cross-border transactions . AML refers to the set of regulations, laws, and procedures aimed at preventing and detecting activities related to money laundering and the financing of terrorism . Here are some potential AML risks associated with PTAs: 1. Lack of Visibility:   PTAs involve transactions that may not be directly visible to the beneficiary bank or financial institution. This lack of transparency can make it more challenging to identify suspicious activities or patterns that may indicate money laundering. 2. Layering :  Layering is a technique used by money launderers to obscure the origin of funds by conducting a series of complex transactions . PTAs can be used to facilitate these layered transactions , making it harder for authorities to trace the source of funds . 3. Rapid Movement of Funds :  PTAs can facilitate rapid movement of fun...

Central Banks are not a very difficult entity to on-board as a counter party because risk based approach will suggest that it is one of the least risky proposition if done correctly. Here are the main steps to perform counterparty check on a Central Bank: 1.        Check on Bank for International Settlements (BIS) that it listed on that website.  The name should match exactly and link should take you to your potential counter party’s website.  The website link for BIS is https://www.bis.org/ .  This is the confirmation that your counterparty is a central bank. 2.        Get the proof of existence and name. This can be achieved by using central bank’s website and Bankers Almanac. Bankers Almanac is an acceptable source for most banks. The link to their website is https://www.bankersalmanac.com/formslogin.aspx# This is not a free resource and your organization will have to pay for this webs...