Raiffeisen Bank to terminate US correspondent banking with Bank of Valletta

Bank of Valletta announced that it has been advised by Raiffeisen Bank International, that it is seeking to terminate its US$ correspondence relationship with the Bank with effect from 31 March 2021.

BOV are in discussions with Raiffeisen regarding the ongoing correspondent banking relationship supporting US$ payments with a view to satisfying any concerns and restoring the position.

BOV are also actively considering alternative routes to diversify the available channels for the payment of US$.

The bank, which is partly owned by the Maltese government, is seeking an additional six months before terminating the relationship fully, during important Moneyval assessments that the country must pass.

In June 2019, ING – BOV’s last USD correspondent bank - said it would be terminating its services to the Maltese bank on December 14.

ING’s decision came after the Dutch bank embarked on a de-risking strategy since being fined €775 million last September, following its admission that criminals laundered money through its accounts.

At the time, BOV said it had intensified its efforts to engage alternative correspondents to “minimise any possible operational disruption to its business and its clients”.

Deutsche Bank had terminated its USD correspondent banking relationship with BOV over two years ago.