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Compliance Officers Playbook

Nesting in Banking: Compliance and SWIFT Solutions

22 Jan 2025

Description

This podcast episode discusses nesting in banking, a risky practice where financial institutions use intermediaries to conceal the true sender of transactions, often to evade anti-money laundering (AML) regulations. The episode explains how nesting creates compliance risks, including AML violations and reputational damage, using real-world examples. It highlights SWIFT's efforts to combat nesting, particularly through the locking of Field 50 in SWIFT messages to ensure transparency. Finally, the episode outlines the crucial role of compliance officers in identifying and preventing nesting through robust due diligence and monitoring.

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