Rietumu Banka has established correspondent banking relations with the international bank Deutsche Bank, which will allow the bank to start implementing direct US dollar payments from May 6, as well as to serve other Latvian market participants for US dollar payments. The correspondent bank in the US provides access to the US payment system allowing for fast and reliable processing of customer payments in US dollars.
“This is a strategically important event in the development of Rietumu Banka, because by adding US dollars to our range of services, the bank’s currency payments options will become the widest both in Latvia and in the Baltics, ensuring full service for our clients to carry out international transactions in fact all over the world. Cooperation with Deutsche Bank strengthens Rietumu Banka’s position among the leading banks in the Baltics in the corporate service segment,” says Jeļena Buraja, Chairman of the Board/CEO of Rietumu Banka.
To make US dollar payments, a bank must have an account at a correspondent bank registered in the US and have an account at the Federal Reserve Bank. Latvian banks and most European banks make US dollar payments through correspondent banks, but not all have the standards and capabilities to provide end to end US dollar payment services. The cooperation of Rietumu Banka with Deutsche Bank will provide safe and seamless access and US dollar processing capability.
Taking into account that a correspondent bank, when executing payment orders of other banks' clients, is co-responsible for the transaction risk, a significant prerequisite for establishing correspondent banking relations is compliance with high compliance requirements. The cooperation with Deutsche Bank confirms that Rietumu Banka has provided full confidence in its processes and compliance with the highest standards in the field of prevention of money laundering and terrorist financing. The start of cooperation was certainly positively influenced by the favorable MONEYVAL report received at the beginning of this year, which recognizes Latvia as a country with an effective, transparent and money laundering risk-resistant system.
“We’re proud to be a partner to Rietumu Banka and Latvia, as we reinforce our support for the EU and in recognition of ensuring International, US, and related standards enabling scalable banking services. Rietumu Banka’s worldclass leadership, Latvia regulatory reform and tone from the top showcase it’s industry-wide culture focused on access and safety,” says Matthew Probershteyn, Head of Institutional Cash Management, North America at Deutsche Bank.