Yesterday BIS issued “clearer guidance on how to best manage risks related to money laundering and the financing of terrorism” and revisions to their document FSB action plan to assess and address the decline in correspondent banking. These clarifications and updates are welcome, however, the real action to maintain correspondent banking is taking place in SWIFT’s GPI initiative. The latest development is the addition of a second non-bank to the programme.
INTL FCStone joins GPI initiative
INTL FCStone Inc. today announced that its London-based subsidiary, INTL FCStone Ltd's Global Payments Division has joined the SWIFT global payments innovation (gpi) initiative.
INTL FCStone Ltd’s Global Payments Division has joined as a non-bank gpi participant due to its specialization in transferring funds in local currency to the developing world on behalf of many of the world’s leading banks. Comments:
- Carsten Hils, Global Head of INTL FCStone Ltd’s Global Payments Division, commented on today’s news, “We are honored to help pave the way for the non-bank community to participate in SWIFT gpi, and plan to utilize our unique expertise to promote greater speed, transparency, and predictability for cross-border payments. SWIFT has taken a leadership position in enhancing cross-border transactions and bringing together over 110 leading global banks, in order to improve business operations and supplier relationships, and achieve greater treasury efficiencies.”
- Steve Gilderdale, Head of UK, Ireland and Nordics at SWIFT, concluded, “We are pleased to welcome INTL FCStone Ltd to SWIFT gpi. As one of the first non-bank participants, INTL FCStone is paving the way for others, helping to further extend our reach across additional payment channels. I would like to thank them for their participation and for the added value they will bring to the initiative.”
CTMfile take: The GPI initiative is far more important to correspondent banking than BIS and FSB give it credit for. Many more non-bank members are required in the GPI initiative.
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What’s the future of correspondent banking?
This article on gtnews.com really spells out the argument that the age of correspondent banking is coming to an end
Swift aims to improve correspondent banking for customers
An initiative that aims to increase the speed, transparency and predictability of cross-border payments has been announced by the bank-owned consortium Swift.