Foreign Correspondent Accounts are accounts held by whom?

Study for the Certified Bank Secrecy Act Professional Test. Use flashcards and multiple-choice questions with hints and explanations. Get exam ready!

Foreign Correspondent Accounts are established when a U.S. bank holds an account for a foreign financial institution, enabling the foreign bank to access U.S. dollar services and the U.S. payment system on behalf of its customers. In this relationship, the U.S. bank is the account holder acting as a correspondent for the foreign bank, allowing the foreign bank to clear and settle transactions in the United States without a local branch. The other options describe different setups—having foreign banks hold accounts for U.S. customers, domestic branches for internal transfers, or joint accounts—which do not define the correspondent banking arrangement.