LAK correspondent banking: who clears the LAK

Tracing a LAK chain

Each instruction names the institution holding that bank's LAK account. Following those links repeatedly ends at a bank that publishes no onward LAK instruction — the ultimate clearer, with direct access to clearing. That is where the money actually settles before moving inwards to the beneficiary.

Who clears LAK payments?

LAK settles through the local clearing system. Banks without direct access hold a nostro account with a correspondent that has it, so a LAK payment reaches the beneficiary by settling at that correspondent first and moving inwards. In the current dataset 4 distinct institutions act as LAK correspondents.

How concentrated is LAK clearing?

The three largest LAK correspondents between them serve about 86% of the banks that publish a LAK instruction. Concentration matters because the withdrawal of one correspondent can affect a large number of respondent banks at once.

How do I find a bank's LAK correspondent?

Search the bank's BIC, select LAK, and the chain resolves hop by hop to the institution that clears the currency, including the nostro account number on each relationship.