USD correspondent bank to cut ties from BOV

Tista' taqra bil- Malti.

In a press release, Bank of Valletta (BOV) said that ING’s decision to terminate its relationship with BOV must be seen in a context where international banks are cutting down on their correspondent banking services all over the world.

The bank further explained that all this is part of a general de-risking which is taking place in the banking industry following a spate of anti-money laundering failures, especially in Europe. BOV added that smaller jurisdictions like Malta are being particularly hard hit, since the volumes of business they generate are not sufficient to be of interest to the larger players, given the risks and the compliance costs involved.

BOV Chairman Deo Scerri said that the Bank deems it critical to have in place a network of correspondent banks that offer clearing services in the main international currencies, such as the US dollar. He explained that this is a major change programme which is being carried out under the guidance of two global consultancy firms, and added that the Board of Directors is fully confident that this programme will enable the BOV to secure alternative correspondent banking relationships well before the ING accounts are closed down in December 2019.