FSB Chair urges intensified action to overcome cross-border payment frictions
The Financial Stability Board Chair reviewed progress on cross-border payments reform and outlined key actions needed to overcome remaining frictions. Speaking at the FSB Payments Summit on March 12, 2026, the Chair emphasized the importance of public and private sector collaboration.
Progress on G20 Roadmap, but targets missed
The FSB Chair highlighted significant progress made under the G20 Roadmap for enhancing cross-border payments, launched in October 2020.
Key achievements include harmonized ISO 20022 requirements, which smooth transaction data flow, and extended Real Time Gross Settlement (RTGS) operating hours to increase time zone overlaps.
Additionally, FATF standards for Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) information have been revised to account for technological developments.
A recent monitoring survey by the CPMI showed over half of jurisdictions operating with extended RTGS hours and more than three-quarters of faster payment systems using ISO 20022. Despite these advancements, the Chair noted that the data shows limited improvement for end-users, and the G20's 2027 targets are far from being met.
The geopolitical landscape and accelerated technological innovation since 2020 underscore the importance of reform while maintaining safety and security.
Persistent frictions despite global efforts
For over 40 years, cross-border payments have been characterized as slow, expensive, and inefficient, a reality that largely persists despite some efficient exceptions.
The FSB Chair identified this as a key priority, emphasizing that frictions in international payments could drive fragmentation of the global financial system, reducing its ability to absorb shocks and support economic growth.
While international guidance and recommendations for upgrading payment systems have largely been produced, implementation remains a significant hurdle.
Challenges include limited adoption of reformed data privacy legislation and patchy implementation of Legal Entity Identifiers (LEIs), which are crucial for data standardization and KYC processes.
These issues contribute to the gap between aspiration and achievement, revealing more problems as excellent work progresses.
Unfinished business demands collective resolve
The speech clearly signals that despite substantial progress, the journey to efficient cross-border payments is far from over.
The Chair's call for intensified public-private partnership and concrete action plans across regions underscores the urgency of implementation.
While no quick wins or easy trade-offs are foreseen, the commitment to leveraging technology and reducing regulatory costs offers a pragmatic path forward for billions of users.