A compliance officer is looking to modify procedures covering correspondent banking relationships. Which three would be recommended under the Wolfsburg Principles on Correspondent Banking? Choose 3…

The Wolfsberg Principles explicitly prohibit correspondent banks from establishing or maintaining relationships with shell banks - entities lacking physical presence and genuine management - because they present an extreme money laundering risk with no legitimate oversight.

The Wolfsberg Principles do not prescribe a risk-based rating system specifically targeting central banks and regional development banks, as these institutions operate under strong sovereign or multilateral oversight and are generally treated as distinct from commercial correspondent banking relationships.

Periodic risk-based reviews of correspondent relationships are a core Wolfsberg recommendation designed to ensure ongoing due diligence and detect changes in a client's risk profile, ownership structure, or regulatory standing.

Assessing the regulatory status, licensing authority, and compliance history of a correspondent client is a fundamental Wolfsberg due diligence requirement that helps respondent banks evaluate their exposure to financial crime risk.