On July 16, the Financial Stability Board (FSB)
released its proposed recommendations to address issues and promote efficiencies in cross-border payments for public consultation. The recommendations were part of the G20 Roadmap, with the goal of improving cross-border payments by 2027. The FSB focused on two key areas:
- Aligning Data Frameworks: The FSB suggested creating greater alignment in data frameworks to reduce the cost and improve the speed and transparency of cross-border payments. The FSB identified the misalignment of data, restrictions on data sharing, and the cost of data storage as significant issues. To address these issues, the FSB recommended establishing a forum for collaboration across sectors, including payments, anti-money laundering and countering terrorism financing, and similar.
- Regulating and Supervising Payment Service Providers (PSPs): The FSB proposed policy recommendations to ensure consistent regulation and supervision of both bank and non-bank PSPs. The aim will be to create a level playing field, prevent regulatory arbitrage, and adapt to the rapidly changing landscape of cross-border payment services.
The FSB will be soliciting feedback on these proposals and has provided online forms for responses, which will be due September 9.
