In response to a Financial Stability Board (FSB) sponsored survey of jurisdictions and banks confirming that approximately half of emerging market and developing economy jurisdictions have experienced a decline in correspondent banking services, the FSB has published a report to the G20 on actions taken to assess and address the decline in correspondent banking.
The FSB will continue to work to address these issues through a 4-point action plan:
- further examine the dimensions and implications of the issue;
- clarify regulatory expectations;
- build domestic capacity in jurisdictions that are home to affected respondent banks; and
- strengthen tools for due diligence by correspondent banks.