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FSB sets out priority actions for cross-border payment roadmap

Source: FSB

The Financial Stability Board (FSB) today published a report setting out priority actions for achieving the G20 targets for enhancing cross-border payments.

The report has been delivered to G20 Finance Ministers and Central Bank Governors for their meeting on 24‑25 February. It synthesises the lessons learnt during the first two years of the Roadmap for Enhancing Cross-border Payments, including feedback from stakeholders, and focuses the next phase of work on three interrelated priority themes:

Payment system interoperability and extension. This focuses on the extension of RTGS operating hours and access policies and improving payment system interoperability. Interlinking arrangements for payment systems allow banks and other payment service providers to transact with each other without requiring them to participate in the same payment system or use intermediaries. Actions include convening a forum for central banks to exchange practices; fostering fast payment systems interlinking across borders; and finalising requirements for cross-border payment service level agreements.

Legal, regulatory and supervisory finalising frameworks. This focuses on the promotion of an efficient legal, regulatory and supervisory environment for cross-border payments while maintaining their safety, security and integrity. Actions aim to improve consistency of bank and non-bank regulation and supervision; enhance information provided to end-users; and update the application of Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) rules.

Cross-border data exchange and message standards. This focuses on facilitating cross-border data exchange and increasing the use of standardised messaging formats for cross-border payments. Actions include enhancing the interaction between data frameworks and cross-border payments; finalising ISO 20022 harmonisation requirements and promoting their real-world implementation; improving API harmonisation for cross-border payments use; and exploring enhanced use of the legal entity identifier (LEI) in cross-border payments.

Successfully implementing these changes will require wider collaboration. To facilitate this, the FSB and Committee on Payments and Market Infrastructures (CPMI) will convene two industry taskforces.1 The International Monetary Fund (IMF) and World Bank will also provide technical assistance to jurisdictions beyond the G20 to help take forward the priority themes. 

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