{"id":12982,"date":"2017-07-27T02:43:30","date_gmt":"2017-07-27T06:43:30","guid":{"rendered":"http:\/\/www.escapeartist.com\/?p=12982"},"modified":"2022-09-12T06:37:23","modified_gmt":"2022-09-12T11:37:23","slug":"nested-correspondent-banking-accounts","status":"publish","type":"post","link":"https:\/\/www.escapeartist.com\/blog\/nested-correspondent-banking-accounts\/","title":{"rendered":"Nested Correspondent Banking Accounts"},"content":{"rendered":"

Nested Correspondent Banking Accounts<\/strong><\/h2>\n

\u201cWhat is a Nested Correspondent Banking Account?”<\/em><\/p>\n

A nested correspondent banking account is one where a service provider sets up a master correspondent banking account at a large bank. Then the provider brings in smaller offshore banks under his master account. <\/span><\/p>\n

A nested correspondent banking account allows smaller banks to deal with providers experienced in their industry rather than with a larger bank that probably has no time for this business. <\/span><\/p>\n

The service provider for the nested correspondent banking account might be a mid-tier bank, financial technology company, or a \u201cmoney service company.\u201d <\/span><\/p>\n

A money service company is a legal catch-all term used by financial regulators to define any businesses that transmits or converts money. A money service company is a non-bank financial services provider.<\/span><\/p>\n

The key to a service provider being approved for a nested correspondent banking account is a high-tech compliance program. One capable of knowing the client of the sub-bank plus tracing the source of all inbound wires and testing the receiver of all outbound wires. <\/span><\/p>\n

These fintech nested correspondent bank account providers have compliance systems that analyze the clients of your bank’s clients, or provide KYCC. <\/span><\/p>\n

Know your client\u2019s client has become <\/span>the <\/span><\/i>buzzword in 2017 as banks seek to reduce risk and automate compliance. <\/span><\/p>\n

 <\/p>\n

Filling The Gap<\/b><\/h2>\n

Nested correspondent account providers are filling a gap in the industry. Large banks stopped providing correspondent services to small international banks because of the high costs of compliance and the risk of fines. <\/span><\/p>\n

Fintech companies are solving both of these issues by developing high-tech software and systems that manage compliance risks far more efficiently than the legacy systems at large banks. And they\u2019re willing to put their money on the line\u2026 to bet on their IT, as it were. <\/span><\/p>\n

That is to say, nested correspondent banking account providers must put up a sizable bond. In most cases, the provider will put up millions of dollars to secure the account. <\/span><\/p>\n

This cash is an insurance policy for the correspondent bank. If they get hit with a fine, it\u2019s coming out of the provider\u2019s reserve fund. <\/span><\/p>\n

Before machine learning and big data, the risk of loss was too great. No bank would risk a million dollar fine to provide services to a correspondent bank that generates $50,000 a year in profit. <\/span><\/p>\n

Today, this risk of loss is reduced because of the provider’s compliance programs. Also, the cost of compliance is reduced through automation. <\/span><\/p>\n

I hope you\u2019ve found this article on nested correspondent accounts to be helpful. For more information on my services, reach out to our office HERE<\/a>.\u00a0<\/strong><\/p>\n

Here is probably the most extensive ebook on <\/i>Everything You Ever Wanted To Know About Eliminating Your Taxes, Protecting Your Assets And Regaining Privacy Over Your Life And Investments<\/i><\/b>. <\/b>It is called The<\/b> Ultimate Guide To Going Offshore<\/b><\/a>.\u00a0 <\/b>Visit our bookstore to purchase it today!<\/p>\n

Enjoy these articles by Escape Artist.<\/b><\/p>\n

Offshore Banking and a Great Money Transfer Service Provider\u00a0 <\/a><\/strong><\/p>\n

3 Advantages of Belize Offshore Banking <\/a><\/strong><\/p>\n

5 Reasons To Use Offshore Banking <\/a><\/strong><\/p>\n

Offshore Banking: A Guide to Asset Protection Strategies \u2013 Part 6 <\/a><\/strong><\/p>\n

Offshore Banking 101 \u2013 Setting Up Your Tax Haven <\/a><\/strong><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Nested Correspondent Banking Accounts \u201cWhat is a Nested Correspondent Banking Account?” A nested correspondent banking account is one where a service provider sets up a master correspondent banking account at a large bank. Then the provider brings in smaller offshore banks under his master account. A nested correspondent banking account allows smaller banks to deal […]<\/p>\n","protected":false},"author":423,"featured_media":36468,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","om_disable_all_campaigns":false,"footnotes":"","_jetpack_memberships_contains_paid_content":false},"categories":[9410,9409],"tags":[],"yst_prominent_words":[1724,3028,2304,2916,2894,2959,2895,2833,2984,2934,3153,2875,2853,2818,2301,12539,3056,4992,3004,2962],"acf":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/www.escapeartist.com\/wp-content\/uploads\/2017\/07\/KYC.jpg","_links":{"self":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts\/12982"}],"collection":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/users\/423"}],"replies":[{"embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/comments?post=12982"}],"version-history":[{"count":9,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts\/12982\/revisions"}],"predecessor-version":[{"id":46448,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts\/12982\/revisions\/46448"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/media\/36468"}],"wp:attachment":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/media?parent=12982"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/categories?post=12982"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/tags?post=12982"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/yst_prominent_words?post=12982"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}