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G20 faster payments roadmap could boost financial crime - report

The G20's plan to make cross-border payments faster, cheaper, more transparent and inclusive could increase fraud and money laundering, warns a new report.

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G20 faster payments roadmap could boost financial crime - report

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

Since 2021, the G20 has been pursuing a “Roadmap for Enhancing Cross-border Payments” which focuses on reducing the cost and enhancing speed, access and transparency of payments across borders.

The Future of Financial Intelligence Sharing (FFIS) is now warning that there "appears to be a lack of joined-up policy thinking" between this effort and economic crime security considerations.

Faster payments, says the report, threaten to remove a fundamental part of existing processes for ensuring economic crime security: the opportunity for transaction screening and recall of payments after instruction, but prior to cross-border settlement.

Neither the original G20 targets, nor the 2023 consolidated progress report on the roadmap, nor any aspect of BIS's “Project Nexus” technical exercise to enable instant cross-border payments, include any assessment of, or mitigation against, the increased risk of fraud and associated money laundering inherent in faster cross-border payments, says the FFIS report.

FFIS calls for ‘economic crime security by design’ to be integrated at the design stage within the payments reform policy-development process.

This requires a "change in institutional culture within G20 institutions most involved in payments reform to embrace the concept that economic crime security is a shared responsibility".

Read the report

Learn more about payments at NextGen Nordics on the 23 April 2024.

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Comments: (2)

A Finextra member 

The sponsors of fast or real time x-border payments should tap into the experience of the global card schemes regarding the neccessity of multiple level anti fraud measures. These organisations have worked with fast real time mass market payments for decades. The fraud fighting work begins long before the payer triggers a payment order. 

Ketharaman Swaminathan

Ketharaman Swaminathan Founder and CEO at GTM360 Marketing Solutions

A2A solves problems for merchants caused by pro Consumer antifraud provisions in credit card. In other words, fraud / scam is a known feature, not bug, of A2A. Strongly doubt if A2A can adopt the credit card antifraud playbook and still remain attractive to merchants. 

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