Remittance service providers’ access to banking services: Monitoring of the FSB’s recommendations
The reduction in correspondent banking relationships has had a significant impact on remittance service providers’ (RSPs’) ability to access banking services, a trend which his particularly acute in those developing countries where remittance flows are a key source of funds for households.
The report assesses implementation of the FSB’s March 2018 recommendations to address problems that remittance service providers’ (RSPs) have accessing banking services. The report concludes that while positive steps have been taken in a number of areas, further work by national authorities, international organisations, RSPs and banks is needed. Jurisdictions have adopted or implemented a number of good practices and procedures to improve their RSP supervisory frameworks and enhance coordination; authorities are responding to and accommodating innovative technology approaches in their regulatory frameworks; and significant technical assistance is being directed at the issue both at a global level and directly to affected jurisdictions.
Dialogue between RSPs, banks and authorities responsible for supervision of the remittance sector has been useful, but has not led to tangible next steps. In order to make further progress, it is important to have a common understanding of issues facing RSPs in their access to banking services and banks’ expectations concerning RSPs’ anti-money laundering compliance.
The FSB also published a progress report on implementation of the FSB’s correspondent banking action plan.
This report will be delivered to the G20 Finance Ministers and Central Bank Governors meeting in Fukuoka from 8-9 June.