On 6 October the Committee on Payments and Market Infrastructures (CPMI) issued a consultative report on Correspondent banking (an essential component of the global payment system, especially for cross-border transactions).
The CPMI consultative report provides some basic definitions, outlines the main types of correspondent banking arrangement, summarises recent developments and touches on the underlying drivers. The report then reviews certain technical measures relating to (i) know-your-customer (KYC) utilities; (ii) increased use of the Legal Entity Identifier (LEI); (iii) information-sharing mechanisms; and (iv) improvements in payment messages. The report puts forward four recommendations for consideration by the industry and authorities.
The report seeks comments on the recommended technical measures by 7 December 2015, to be sent to the CPMI secretariat.