välityspankkien

Välityspankkien, a Finnish term, translates to intermediary banks or correspondent banks in English. These are financial institutions that provide services to other banks, primarily for international transactions. When a bank needs to conduct business in a foreign country where it does not have a physical presence or direct correspondent relationship, it will rely on a välityspankki.

The primary function of välityspankkien is to facilitate cross-border payments and settlements. They hold accounts for foreign banks and process transactions on their behalf, enabling money transfers between different countries. This is crucial for international trade and investment, allowing businesses and individuals to make and receive payments globally.

Välityspankkien also offer a range of other services, including foreign exchange, trade finance, and custodial services. They act as a bridge, connecting banks that operate in different regulatory and financial systems. Without välityspankkien, international banking would be significantly more complex and expensive.

The relationship between a bank and its välityspankki is typically established through a correspondent banking agreement. This agreement outlines the terms and conditions under which the intermediary bank will provide services. Due diligence and compliance with anti-money laundering (AML) and know your customer (KYC) regulations are essential aspects of these relationships, as välityspankkien play a role in preventing financial crime.