# Correspondent Banking

*Banking & Payments — Finicade finance glossary*

Correspondent banking is one bank holding an account for another so it can make payments in a currency or country where it has no presence. It's the plumbing of cross-border payments. Anti-money-laundering liability has driven large banks to exit riskier relationships wholesale — de-risking — which has cut off entire small economies from the dollar system, an unintended consequence regulators now acknowledge.

**Also known as:** correspondent bank, nostro account, de-risking

**Related terms:** [Cross-Border Payments](https://finicade.com/glossary/cross-border-payments), [SWIFT](https://finicade.com/glossary/swift), [Anti-Money Laundering (AML)](https://finicade.com/glossary/anti-money-laundering), [Remittance](https://finicade.com/glossary/remittance), [Sanctions Screening](https://finicade.com/glossary/sanctions-screening)

Source: https://finicade.com/glossary/correspondent-banking