Bank Due Diligence for Foreign Correspondent Accounts

C

When conducting due diligence for a foreign correspondent bank account, banks are required to gather a significant amount of information to ensure that they are not inadvertently facilitating money laundering or other illegal activities. The information collected typically includes the correspondent bank's ownership, licensing, financial information, and products/services.

Option C, copies of the tax return of the correspondent bank, is NOT required information in this case. While financial information is generally required, tax returns are not always requested as part of due diligence. In fact, tax returns may not be relevant to the due diligence process at all, depending on the specific circumstances of the correspondent bank account.

Option A, the identities of the correspondent bank's true ownership, is a critical piece of information to gather during due diligence. This helps the bank understand who ultimately controls the correspondent bank and can help identify any potential risks associated with that ownership structure.

Option B, information on the government licenses of the correspondent bank, is also important to gather. This can help the bank understand whether the correspondent bank is authorized to operate in its home country and can also help identify any regulatory or compliance issues.

Option D, information on the products and services the correspondent bank offers, is also a critical piece of information. This can help the bank understand the nature of the correspondent bank's business and can also help identify any potential risks associated with the products and services offered.

In summary, while all of the options may be important in certain circumstances, option C (copies of the tax return of the correspondent bank) is not a universally required piece of information when conducting due diligence for a foreign correspondent bank account.