7‑2 Matters to which a senior officer mu

7‑2 Matters to which a senior officer must have regard before giving approval

(1) For the purposes of paragraph 96(1)(b) of the Act, this section sets out the matters that a senior officer of a financial institution (the correspondent) must have regard to before approving the entry by the correspondent into a correspondent banking relationship with another financial institution (the respondent) that will involve a vostro account. (2) The senior officer must have regard to: (a) the risks of money laundering, financing of terrorism, proliferation financing and other serious crimes assessed in the written record of the due diligence assessment carried out in relation to the entry into the correspondent banking relationship; and (b) the appropriateness of the correspondent’s AML/CTF program to manage and mitigate those risks. (3) If the correspondent is to maintain payable‑through accounts, the senior officer must also have regard to the following: (a) whether the senior officer is satisfied that the respondent will undertake initial customer due diligence and ongoing customer due diligence in relation to customers that have access to the payable‑through accounts; (b) whether the senior officer is satisfied that the respondent would be able to provide the correspondent, on request, information collected when the respondent undertakes initial customer due diligence and ongoing customer due diligence in relation to the customers that have access to the payable‑through accounts and the reliable and independent data used to verify the information.