Featured Product

    FSB Reports on Progress of Roadmap to Enhance Cross-Border Payments

    October 13, 2021

    The Financial Stability Board (FSB) published a progress report on the first year of the G20 roadmap for enhancing cross-border payments. The progress report highlights that most of the milestones set by the roadmap for 2021 have been successfully completed or are close to finalization. The report confirms the next steps in the roadmap for 2022 and beyond, which comprise not only further analyses but the development of specific proposals for material improvements to existing as well as the development of new systems. It notes that a call for proposals for a set of harmonized application programming interfaces (APIs) or standards using the existing API protocols for cross-border payments is also expected to be launched soon.

    The report highlights that one of the foundational steps taken in 2021 was a stocktake of existing international standards, principles, and guidance relevant to the safe and efficient performance of cross-border payments. The stocktake, to be published later in October 2021, has identified three policy areas that will be further explored. These policy areas are supervision of banks versus non-banks, transparency of information provided to end-users about payment transactions, and cyber or technology risk regulation. As a next step, a focused workstream will be launched to work with other standard-setting bodies to consider, by March 2022, how to address gaps or areas of further alignment (if any) in the area of supervision of banks and non-banks. FSB plans to explore with other standard-setting bodies how international standards, principles, and guidance relevant to cross-border payments, including those on cyber risk, affect the timely prevention and management of fraud in payments. FSB will also explore whether there is a need to evolve standards, or their implementation in this area, in light of the transition to real-time cross-border payments.

    The report notes that a call for proposals for a set of harmonized application programming interfaces (APIs) or standards using the existing API protocols for cross-border payments is also expected to be launched soon. According to the report, an exploration of the scope for, and obstacles to develop, a global digital Unique Identifier for cross-border payments, and potentially other financial transactions, has been extended from December 2021 to October 2022. Financial Innovation Network of FSB has been conducting a wider analysis of developments in the use of Digital identifications in the financial sector. A series of early bilateral outreach calls took stock of the scope and obstacles for a global digital unique identifier, including the Legal Entity Identifier for legal entities. The report also mentions that the Committee on Payments and Market Infrastructures (CPMI), in collaboration with BIS Innovation Hub, IMF, and World Bank, will identify and analyze options for access to, and interlinking of, the central bank digital currencies (CBDCs) that could improve cross-border payments. FSB has also published quantitative global targets for addressing the challenges of cost, speed, transparency, and access faced by cross-border payments, along with the responses to consultation on the quantitative global targets. An implementation approach for monitoring progress toward the targets will be developed in 2022.

    The report also mentions that the Financial Action Task Force (FATF), in collaboration with the Basel Committee on Banking Supervision (BCBS), is developing options to encourage further harmonization in anti-money laundering and terrorist financing (AML/CFT) requirements to help address challenges to cross-border payments. These options include proposals for the review of relevant FATF standards and the development of best practices or consolidated guidance on cross-border payments. The report notes that CPMI is also in the process of integrating the experience of liquidity bridges into a framework, which is expected to cover aspects such as reciprocal account opening and operational procedures. 

     

    Related Links

    Keywords: International, Banking, Securities, Cross-Border Payments, G20, Roadmap, Digital Currencies, CBDC, Cyber Risk, AML/CFT, API, LEI, Regtech, API Standards, FSB

    Related Articles
    News

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News
    News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.

    January 01, 2023 WebPage Regulatory News
    News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.

    December 30, 2022 WebPage Regulatory News
    News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.

    December 29, 2022 WebPage Regulatory News
    News

    CBIRC Revises Measures on Corporate Governance Supervision

    The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.

    December 29, 2022 WebPage Regulatory News
    News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News
    News

    EBA Updates Address Basel and NPL Requirements for Banks

    The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.

    December 22, 2022 WebPage Regulatory News
    News

    ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite

    The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.

    December 22, 2022 WebPage Regulatory News
    News

    FCA Sets up ESG Committee, Imposes Penalties, and Issues Other Updates

    The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.

    December 20, 2022 WebPage Regulatory News
    News

    FSB Reports Assess NBFI Sector and Progress on LIBOR Transition

    The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.

    December 20, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8697