Harry WellsThe FSB has launched a consultation on its recommendations regarding increased alignment in data flows and greater consistency in the regulation and supervision of bank and non-bank payment service providers (PSPs) with regards to cross-border payments.
The FSB aims to remove the friction in regulatory requirements for collecting, storing and managing data that create barriers to the speed and accessibility of cross-border payments. Identified barriers include:
- data sharing restrictions which prevent safe processing of cross-border payments;
- increased costs from storage and handling; and
- misalignment of data that prevents smooth cross-borer payment processing.
The recommendations to address these focus on the following:
- mitigating uncertainty concerned with balancing regulatory and supervisory obligations;
- improving interoperability of data and regulatory requirements;
- addressing data flow restrictions; and
- reducing barriers to innovation.
The FSB’s measures to improve alignment in the legal, regulatory and supervisory regimes applicable to the cross-border payment activities of banks and non-banks include:
- competent authorities to conduct risk assessments of the cross-border payments sector to understand the risks involved with PSPs;
- a review of existing regimes to ensure they address all issues identified in risk assessments;
- regulatory and supervisory regimes to be designed to promote consumer protection and address consumer harms; and
- competent authorities to publish supervisory expectations to encourage safe payment services.
The consultation closes on 9 September 2024.