Based on the provided information, answer the following question: (b) What is Correspondent Banking ?

Correspondent Banking refers to a banking arrangement where one bank (the correspondent bank) provides services on behalf of another bank (the respondent bank) in a different location or country. This relationship allows banks to access various financial services and conduct transactions efficiently across different jurisdictions. The Term Correspondent Banking relationship acts as an intermediary or agent, facilitating wire transfers, conducting business transactions, accepting deposits and gathering documents on behalf of another bank. Correspondent Banks are most likely to be used by domestic banks to service transactions that either originate or are completed in foreign countries. Domestic Banks also use Correspondent Banks to gain access to foreign financial markets and to serve international clients without having to open branches abroad. The correspondent bank offers a range of services to the respondent bank, including payment processing, foreign exchange, trade finance, and liquidity management. Services offered are clearing and settlement of payment transactions, Foreign Exchange, Trade Finance, Cash management etc. Correspondent banking relationships are subject to strict regulatory scrutiny, particularly regarding Anti-Money Laundering (AML), Combating the Financing of Terrorism (CFT), and sanctions compliance.