The following factors may contribute to increasing risk:

a) The account can be used by other respondent banks that have a direct relationship with the respondent but not with the correspondent (‘nesting’, or downstream clearing), which means that the correspondent is indirectly providing services to other banks that are not the respondent.

b) The account can be used by other entities within the respondent’s group that have not themselves been subject to the correspondent’s due diligence.

c) The service includes the opening of a payable-through account, which allows the respondent’s customers to carry out transactions directly on the account of the respondent.