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  • Stage 2 Report on Enhancing Cross-Border Payments Published

    The Committee on Payments and Market Infrastructures has published a report on enhancing cross-border payments and building blocks of a global roadmap. The report forms the second stage of the G20’s three-stage process to develop a roadmap that will enable countries to enhance their cross-border payments systems. The Financial Stability Board published the Stage 1 report in April 2020, which identified existing challenges in cross-border payments systems and specified key “frictions” in the cross-border payments system that contribute to these challenges. The third stage will involve coordination between the FSB and CPMI, together with other international organizations, to compile a roadmap for implementing the improvements. The FSB published a statement welcoming the CMPI report and confirmed that it intends to publish the Stage 3 report, which will be the roadmap for enhancing cross-border payments, in October.

    In its Stage 2 report, the CPMI discusses 19 building blocks where further public and private sector work would enhance cross-border payments and address the frictions ascertained by the FSB. The 19 building blocks are:
    1. Develop common cross-border payments vision and targets;
    2. Implement international guidance and principles;
    3. Define common features of cross-border payment service levels;
    4. Align regulatory, supervisory and oversight frameworks;
    5. Apply anti-money laundering and counterterrorist financing rules consistently and comprehensively;
    6. Review interaction between data frameworks and cross-border payments;
    7. Promote safer payment corridors;
    8. Foster KYC and identity information-sharing;
    9. Facilitate increased adoption of payment versus payment;
    10. Improve (direct) access to payment systems;
    11. Explore reciprocal liquidity arrangements;
    12. Extend and align operating hours of critical infrastructure and market participants;
    13. Pursue interlinking of payment systems established in different jurisdictions;
    14. Adopt harmonized version of ISO 20022 for message formats;
    15. Harmonize application programming interfaces protocols for data exchange;
    16. Establish unique identifiers with proxy registries;
    17. Consider the feasibility of new multilateral platforms and arrangements for cross-border payments;
    18. Foster the soundness of global stablecoin arrangements; and
    19. Factor an international dimension into central bank digital currency designs.

    View the CPMI’s Stage 2 report on enhancing cross-border payments.

    View the CPMI’s Technical Report Accompanying the Stage 2 report.

    View details of the FSB’s Stage 1 report on cross-border payments.
    View the FSB’s statement on the Stage 2 report.
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