The Financial Stability Board (FSB) has published a progress report on its action plan to assess and address the decline in correspondent banking. In terms of deliverables for 2017, these include:

  • By January 2017, the FSB will enhance its public website to include a specific page on correspondent banking matters, to act as a centralised source of relevant public information;
  • by March 2017, the FSB will publish suggested main elements of a communication strategy that jurisdictions could follow in an effort to build trust by communicating the steps taken to improve their anti-money laundering / counter financing terrorism frameworks and the quality of their supervision of financial institutions;
  • by April 2017, the FSB will publish the findings from its survey on correspondent banking and from the end -2016 update of SWIFT data;
  • by April 2017, the FSB and SWIFT will set out a process and scope of data for the on-going monitoring of trends in correspondent banking;
  • by June 2017, the Financial Action Task Force (FATF) expects to finalise its work on the definition of correspondent banking for the purposes of the FATF standards;
  • by June 2017, the Basel Committee on Banking Supervision will publish its revised guidance on correspondent banking;
  • by June 2017, the SWIFT Payments Market Practice Group and the Wolfsberg Group are expected to develop an action plan for strengthening market guidance concerning the use-cases for payment messages including: (i) what data should be included in payment messages; (ii) how to include legal entity identifiers in payment messages; and (iii) where to place the information on beneficiary and ordering customer in the data fields.

View FSB progress report and workplan on correspondent banking, 19 December 2016