“U.S. banks, through the correspondent accounts they provide to foreign banks, have become conduits for dirty money flowing into the American financial system and have, as a result, facilitated illicit enterprises, including drug trafficking and financial fraud." Think this quote is from a recent headline or Congressional hearing? It's not — rather, it is the introductory sentence from a February 5, 2001 , report on the role of correspondent banking in money laundering.
Correspondent banking plays a vital role in international trade and finance. Through correspondent banking relationships, correspondent financial institutions provide a wide range of services to respondent financial institutions, including clearing, cash and treasury management, investment, custody, foreign exchange, and lending services.