10/7/2016 Anti-Money Laundering 1 Nostro-Vostro, Loro Accounts Date: 29 August 2016 By: Bachir El Nakib Senior Consultant Compliance Alert (SARL), Lebanon, Qatar Nostro‐Vostro‐ Loro Accounts
10/7/2016 Anti-Money Laundering 1
Nostro-Vostro, Loro Accounts Date: 29 August 2016 By: Bachir El Nakib Senior Consultant Compliance Alert (SARL), Lebanon, Qatar
Nostro‐Vostro‐ Loro Accounts
Operations of Nostro and Vostro accounts
Hang Seng Bank’s Ledger
Due to Midland Bank Account
Balance b/f $900,000
Due from Midland Bank Account
Balance b/f £100,000
Operations of Nostro and Vostro accounts
Midland Bank’s Ledger
Due to Hang Seng Bank Account
Balance b/f £100,000
Due from Hang Seng Bank Account
Balance b/f $900,000
Operations of Nostro and Vostro accounts
Hang Seng Bank’s Ledger
Due to Midland Bank Account
Balance b/f $900,000
Due from Midland Bank Account
Balance b/f £100,000
XYZ Company $300,000
Mr. Wong Account £20,000
Operations of Nostro and Vostro accounts
Hang Seng Bank’s Ledger
Mr. Wong Account
Balance b/f £50,000
XYZ Company Account
Due from Midland Bank £20,000
Due to Midland Bank $300,000
Operations of Nostro and Vostro accounts
Midland Bank’s Ledger
Due to Hang Seng Bank Account
Balance b/f £100,000
Due from Hang Seng Bank Account
Balance b/f $900,000
Miss Wong £20,000
ABC Company $300,000
Operations of Nostro and Vostro accounts
Midland Bank’s Ledger
Miss Wong Account
Balance b/f £800 Due to Hang Seng Bank £20,000
ABC Company Account
Due from Hang Seng Bank $300,000
Nostro Contd…. Here in the above example given in VOSTRO account the
same account is a NOSTRO account for ‐ Bank A (Barclays Bank of UK), or if ‐ Bank B (ICICI Bank of India) Opens an account in Bank A (Barclays Bank of UK) then that account is a NOSTRO account for Bank B (ICICI Bank of India). NOSTRO accounts are usually in the currency of the foreign
country. This allows for easy cash management because currency doesn't need to be converted.
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Example: If you wish to transfer USD 10,000/‐ from your USD Dollar account maintained with a local bank in the United States of America to a Savings/Current Account maintained with Deutsche Bank, India then you need to provide the following information to the local bank in United States of America.
‐ Transfer Amount : USD 10,000/‐Transfer Currency : US – Dollar ‐ Beneficiary Name : Name of the account holder in Deutsche Bank, India ‐ Beneficiary Bank Account Number : Account no. of the Deutsche Bank account in
India ‐ Beneficiary Bank : Deutsche Bank, India ‐ Beneficiary Bank Branch : Name of Deutsche Bank branch in India ‐ Beneficiary Bank Swift / BIC Code : DEUTINBBPBC ‐ Charges : "Our" This will ensure that the correspondent bank and remitting bank
charges (dependent on correspondent / remitting bank) are levied at the point of origination and full money is received by the beneficiary.
‐ Correspondent Bank : Deutsche Bank Trust Company Americas ‐ Correspondent Bank Account Number : 04‐411‐536 ‐ Correspondent Bank Location : New York ‐ Correspondent Bank Swift / BIC Code : BKTRUS33
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