FSB action plan to assess and address the decline in correspondent banking
This progress report provides an update on the implementation of the FSB’s November 2015 four-point action plan to assess and address the decline in correspondence banking, namely:
- Further examining the dimensions of the problem, and its causes and effects;
- Clarifying regulatory expectations, as a matter of priority, including through guidance by the Financial Action Task Force (FATF);
- Domestic capacity-building in jurisdictions that are home to affected respondent banks;
- Strengthening tools for due diligence by correspondent banks.
A decline in the number of correspondent banking relationships is a source of concern for the international community because it may affect the ability to send and receive international payments, or drive some payment flows underground, with the potential consequences on growth, financial inclusion, as well as the stability and integrity of the financial system. The progress report includes a set of deliverables for 2017 to implement the action plan.
The action plan is being taken forward through. the FSB’s Correspondent Banking Coordination Group (CBCG), which comprises senior representatives from international organisations and standard setters and national authorities in the FSB and its Regional Consultative Groups. A further progress report on the work of the CBCG will be published in advance of the G20 Leaders’ Summit in Hamburg in July 2017.