Certified Anti-Money Laundering Specialist (CAMS) 2025 – 400 Free Practice Questions to Pass the Exam

A Respondent Bank refers specifically to a financial institution that uses services provided by another bank, often termed a correspondent bank. This arrangement is commonly found in international banking transactions where the respondent bank might lack certain capabilities, such as access to specific payment networks or foreign currency transactions. By partnering with a correspondent bank, the respondent bank can offer its clients a broader range of banking services, such as cross-border payments and foreign exchange transactions that might otherwise be unavailable. This relationship is crucial for financial institutions that serve a local customer base but need to facilitate international operations.

In contrast, the other options describe different types of banking functions or roles that do not align with the definition of a respondent bank. A bank that issues loans focuses on lending activities, while a bank that operates in isolation does not engage in collaborations with other banks. Lastly, a bank offering investment advice pertains to wealth management or financial advisory services, which again differs from the concept of a respondent bank and its reliance on the services of a correspondent bank.