Featured Product

    FSB Publishes Reports on Correspondent Banking and Remittances

    March 16, 2018

    FSB published two reports as part of its work to assess and address the decline in correspondent banking relationships: one is a progress report on the FSB action plan to assess and address the decline in correspondent banking and the second report is a stocktake on remittance service providers’ access to banking services. These reports have been delivered to G20 Finance Ministers and Central Bank Governors. FSB also published a short cover note, highlighting key messages to the G20 leaders.

    A decline in the number of correspondent banking relationships remains a source of concern for the international community. This is because, in affected jurisdictions, it may impact the ability to send and receive international payments or drive some payment flows underground, with potential adverse consequences on international trade, growth, financial inclusion, and the stability and integrity of the financial system. The following are the key highlights of the two reports:

    • Progress report on FSB action plan. The progress report highlights actions taken to implement the four-point action plan on correspondent banking since the July 2017 update of FSB. The actions include strengthening tools for due diligence by correspondent banks; data collection and analysis; clarifying regulatory expectations, as a matter of priority, including guidance by the Financial Action Task Force (FATF) and BCBS; and domestic capacity building in jurisdictions that are home to the affected respondent banks. This is the fourth progress report and it follows the earlier reports that were published in August 2016, December 2016, and July 2017.
    • Report on stocktake of remittance service providers’ access to banking services. The report identifies intertwined drivers for the termination of banking services to remittance service providers, including profitability, the perceived high risk of the remittance sector from an anti-money laundering/counter terrorism financing (AML/CFT) perspective, supervision of remittance service providers, and, in some jurisdictions, weak compliance with international standards, particularly those relating to AML/CFT. FSB, Financial Action Task Force, Global Partnership for Financial Inclusion, IMF, and World Bank will coordinate to monitor take-up of the recommendations of this stocktake effort and report back to the G20 in July 2019. The report makes 19 recommendations in four areas to address gaps and remaining barriers to banking services by remittance service providers. The four categories of recommendations are:
      • Promoting dialog and communication between the banking and remittance sectors
      • Improving implementation of international standards and oversight of the remittance sector
      • Use of innovation in the remittance sector and its possible role in enabling remittance service providers’ greater access to banking services
      • Technical assistance related to remittances

     

    Related Links

    Keywords: International, Banking, Correspondent Banking, Progress Report, Recommendations on Remittances, AML/CFT, FSB

    Related Articles
    News

    MAS Concludes Blockchain Payments Prototype Shows Commercial Potential

    MAS and Temasek jointly released a report to mark the successful conclusion of the fifth and final phase of Project Ubin, which focused on building a blockchain-based multi-currency payments network prototype.

    July 13, 2020 WebPage Regulatory News
    News

    EBA Publishes Phase 2 of Technical Package on Reporting Framework 2.10

    EBA published phase 2 of the technical package on the reporting framework 2.10, providing the technical tools and specifications for implementation of EBA reporting requirements.

    July 10, 2020 WebPage Regulatory News
    News

    APRA Updates Reporting Validation Rules in July 2020

    APRA updated the lists of the Direct to APRA (D2A) validation rules for authorized deposit-taking institutions, insurers, and superannuation entities.

    July 10, 2020 WebPage Regulatory News
    News

    PRA to Partly Apply EBA Guidelines on Disclosures for COVID Measures

    PRA updated the statement that provides guidance to regulated firms on implementation of the EBA guidelines on reporting and disclosure of exposures subject to measures applied in response to the COVID-19 crisis.

    July 10, 2020 WebPage Regulatory News
    News

    EBA Updates List of Correlated Currencies Under CRR

    EBA updated the 2019 list of closely correlated currencies that was originally published in December 2013.

    July 10, 2020 WebPage Regulatory News
    News

    FASB Proposes to Delay Implementation of Insurance Contracts Standard

    FASB issued a proposed Accounting Standards Update that would grant insurance companies, adversely affected by the COVID-19 pandemic, an additional year to implement the Accounting Standards Update No. 2018-12 on targeted improvements to accounting for long-duration insurance contracts, or LDTI (Topic 944).

    July 09, 2020 WebPage Regulatory News
    News

    APRA Updates Regulatory Approach to Loan Deferrals Amid COVID Crisis

    APRA updated the regulatory approach for loans subject to repayment deferrals amid the COVID-19 crisis.

    July 09, 2020 WebPage Regulatory News
    News

    BCBS and FSB Set Out Recommendations for Benchmark Transition

    BCBS and FSB published a report on supervisory issues associated with benchmark transition.

    July 09, 2020 WebPage Regulatory News
    News

    IAIS Sets Out Recommendations for Benchmark Transition for Insurers

    IAIS published a report on supervisory issues associated with benchmark transition from an insurance perspective.

    July 09, 2020 WebPage Regulatory News
    News

    ESMA Updates Reporting Manual on European Single Electronic Format

    ESMA updated the reporting manual on the European Single Electronic Format (ESEF).

    July 09, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5469