Correspondent bank relations are required for you to be able to execute payments made to and from your bank in a currency that is not the same as the currency of the jurisdiction where you hold your banking license. As with SWIFT membership, relations are required if you are looking to specialize in payment processing services, wire transfer services and trade management.
Correspondent bank relations are not free, and generally entering into an agreement with a correspondent bank will cost you an annual fee to keep the working relationship. This is due to the fact that they do not charge a fee for acting as the correspondent bank, but are paid an annual fee to provide this service.
Finding banks that are willing to act as correspondent banks is relatively easy, as you can approach almost any major bank worldwide to act as one; it is finding the correspondent bank that is right for you in terms of services, as well as cost. Another important point to remember is that you don’t need a correspondent bank for every currency available, but rather need to decide which major currencies you wish to deal in, and choose your correspondent banks that way.
Starting Business can provide you with assistance in finding and entering agreements with correspondent banks. We can also help you to decide which currencies you would like to specialize in, and therefore cut down the number of correspondent banks that you will require.
If you are interested in starting the bank license application process, please Contact Us.