Financial Stability Board Reports on Progress to Address Correspondent Banking Declines
05/29/2019The Financial Stability Board has published two reports as an update on the work to address correspondent banking declines - the "FSB Action Plan to Assess and Address the Decline in Correspondent Banking - Progress Report" and "Remittance Service Providers' Access to Banking Services: Monitoring of the FSB's Recommendations".
The Progress Report notes that correspondent banking relationships are still declining and that there are higher concentrations in the number of correspondent banking relationships. It also describes how there is evidence of the implementation of the regulatory clarifications of the Financial Action Task Force, but that the CPMI recommended technical measures and the Due Diligence measures issued by the Wolfsberg group still need to be widely adopted by industry. In addition, although steps have been taken to adopt the FSB's guidance on providing remittance service providers with access to banking services, the FSB considers that further work is needed by national authorities, international bodies, remittance firms and banks, to fully implement them.
The Monitoring Report sets out the steps that, in the FSB's view, could be taken to encourage implementation of the FSB guidance on remittance service providers' access to banking services. The FSB is recommending that international bodies, such as the FATF and the Basel Committee on Banking Supervision, should continue to monitor implementation and engage with the industry. The FSB also plans to engage with industry stakeholders to develop guidelines on the information that remittance service providers should provide to banks to facilitate due diligence as well as a standardized tool to assist with customer due diligence.
View the FSB Action Plan to Assess and Address the Decline in Correspondent Banking - Progress Report.
View the Remittance Service Providers' Access to Banking Services: Monitoring of the FSB's Recommendations.
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