Raiffeisen Bank International has agreed on a two month extension to its US dollar correspondent banking relationship with Bank Of Valletta.

Last year, BOV chief executive Rick Hunkin revealed that the Austrian bank plans to end the relationship on March 31st. 

But it said on Friday that their deal will be extended by two months - to May 31. 

A correspondent bank is typically used in international buy, sell, or money transfer transactions to facilitate foreign currency exchange and payments.  

Raiffeisen Bank is BOV’s last remaining US dollar correspondent banking partner after Dutch bank ING cut ties with BOV as Malta was considered too risky to be worth serving. 

Hunkin has admitted that Malta's poor showing in a review of its anti-money laundering regime by the Council of Europe's Moneyval had played a big part in the withdrawal of services.

BOV said on Friday that it is making progress to source alternative arrangements for its USD correspondent transactions.

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