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  • 28 October 2022
  • London

Under the many global banking rules (i.e. UK CASS, SEC Rule 15(c)3-3), on receipt of client funds all regulated firms must promptly place all client money into one or more client bank accounts. The funds must be held separately and be easily distinguishable from the firm’s own proprietary bank accounts, even in instances where the money concerned is held for only a short time before being paid onward.

Based on the 356 Cash Correspondent Monitoring questionnaire submissions for 2021, 71.6% of all cash correspondent banks do keep client cash segregated and identifiable. However, most alarmingly, 7% of respondents stated they did not segregate and identify client cash.

Do you understand what your bank does with client money?

By joining the Cash Correspondent Monitoring programme this information is requested as part of the questionnaire. If you would like further information regarding our product, please contact one of our experts.