On 16 July 2024, the Financial Stability Board (FSB) issued consultation reports on proposed recommendations intended to promote greater alignment in data frameworks related to cross-border payments and consistency in the regulation and supervision of bank and non-bank payment service providers.

The recommendations regarding data frameworks follow an FSB stocktake of national and regional data frameworks which identified a number of frictions between data frameworks that pose significant challenges to improving the cost, speed, transparency and accessibility of cross-border payments. Drawing from the findings of the stocktake and further engagement with government authorities and the private sector, the proposed recommendations:

  • Address uncertainty about how to balance regulatory and supervisory obligations.
  • Promote alignment and interoperability of regulatory and data requirements as well as promoting their consistent and widespread implementation.
  • Mitigate restrictions on the flow of data across borders.
  • Reduce barriers to innovation.

The recommendations are intended to be the start of a process for jurisdictions globally to identify actions and best practices that would help to foster a more efficient cross-border transfer of payments-related data while respecting public policy objectives around how data are used, stored and secured by the payment industry.

The FSB is proposing six policy recommendations for regulating and supervising bank and non-bank payment service providers offering cross-border payment services. Recommendations 1 to 3 detail steps that should be taken to identify, understand and assess risks across the payment service provider (PSP) sector; to evaluate the effectiveness of existing laws, regulations, and supervisory frameworks in addressing these risks, to identify needed adjustments; and to ensure the protection of consumers who use cross-border payment services. Recommendation 4 addresses the need for clear guidance on supervisory expectations across the sector to promote the safe and efficient provision of payment services. Recommendation 5 covers the role of licensing or registration requirements in ensuring a risk-proportionate level-playing field from the time a PSP enters the sector. Recommendation 6 emphasises the need to foster expanded information and data sharing both within and across jurisdictions, which is critical to conducting comprehensive risk assessments and as needed, regulatory or supervisory actions.

Next steps

The deadline for comments on both consultation reports is 9 September 2024.