A relationship in which one bank (the correspondent) provides banking services — account management, payments, FX — on behalf of another bank (the respondent), enabling cross-border transactions. Nested correspondent networks represent a high ML/TF risk and a major AML compliance challenge.
Category: compliance. Part of the Identity Technologist Glossary — 158+ practitioner-grade definitions covering identity verification, KYC/AML, biometrics, fraud prevention, and compliance. See all terms at https://identitytechnologist.com/glossary.