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Things have changed with recent versions of the OS. Prior to that it was
recommended you CONNECT to the remote one and use RLA to update the local
one.

http://pic.dhe.ibm.com/infocenter/iseries/v7r1m0/topic/db2/rbafzwhatsnew.htm
What's new for IBM i 7.1
What's new as of April 2012
INSERT where the target table and the select-statement reference
different relational databases
...
What's new as of October 2012
CREATE TABLE and DECLARE GLOBAL TEMPORARY TABLE where the new table
and the select-statement reference different relational databases
...

Question the UPDATE though:
http://pic.dhe.ibm.com/infocenter/iseries/v7r1m0/topic/db2/rbafzupdt.htm
"The name must identify a table or view that exists at the current
server,".
That might be ok, if you can put a three part name on the from name.

Sample three part name usage:
http://pic.dhe.ibm.com/infocenter/iseries/v7r1m0/topic/sqlp/rbafyremoteins.htm

Rob Berendt

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