Bailey urges intensified action on cross-border payments reform
Bank of England Governor Andrew Bailey called for intensified efforts to reform cross-border payments, highlighting the remaining challenges despite significant progress since the 2020 G20 Roadmap. He emphasized the critical role of both public and private sectors in achieving the G20's goals.
Progress meets persistent friction
Andrew Bailey, Governor of the Bank of England and Chair of the FSB, acknowledged significant progress since the G20 Roadmap for cross-border payments launched in October 2020.
Key achievements include the harmonisation of ISO 20022 requirements, extended Real Time Gross Settlement (RTGS) operating hours, and revised FATF standards for Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) information.
Monitoring surveys by the CPMI show over half of jurisdictions now operate with extended RTGS hours, and three quarters of faster payment systems use ISO 20022. However, Bailey highlighted 'tough messages' indicating an implementation gap.
Only one third of jurisdictions have reformed data privacy legislation, and adoption of Legal Entity Identifiers (LEIs) remains patchy.
Crucially, data shows limited improvement for end-users, leaving the G20's 2027 targets far from reach.
Four pillars for future action
Bailey asserted that persistent challenges in cross-border payments are not insurmountable, demanding intensified, collaborative efforts.
He outlined four key areas for future action.
These include public sector development of Jurisdiction and Regional Action Plans, with an FSB review of data frameworks and regulation scheduled for early 2027.
Further innovation and infrastructure development, leveraging digital technology, is crucial.
Reducing regulatory compliance costs without diluting standards, potentially through initiatives like BIS Project Mandala, is also necessary.
Finally, strong commitment and collective action from the private sector, fostering public-private partnerships, are essential to drive progress towards the G20's goals.