Office Of The Comptroller Of The Currency Bulletin: Risk Management Guidance On Foreign Correspondent Banking: Risk Management Guidance On Periodic Risk Reevaluation Of Foreign Correspondent Banking

The Office of the Comptroller of the Currency (OCC) is issuing guidance to national banks, federal savings associations, and federal branches and agencies (collectively, banks) regarding periodic evaluation of the risks related to correspondent accounts for foreign financial institutions (foreign correspondent accounts). This guidance describes corporate governance best practices for banks’ consideration when conducting these periodic evaluations of risk and making account retention or termination decisions relating to their foreign correspondent accounts. This guidance also reiterates the OCC’s supervisory expectation that, in connection with implementing the requirement that banks have established policies and procedures for conducting risk assessments for foreign correspondent accounts, banks should periodically evaluate and reassess this risk (risk reevaluation) as part of their ongoing risk management and due diligence practices.¹