This paper sets out an industry position regarding the G20’s roadmap to enhance cross-border payments (Roadmap). After briefly outlining the Roadmap and targets that the official sector has set, the paper addresses important changes in the payments landscape since the Roadmap was adopted, as well as actions underway aligned to the Roadmap’s four objectives of faster, cheaper, more transparent and more inclusive cross-border payments.
Next, the paper identifies key drivers of cross-border challenges around cost and speed, including fragmented anti-money laundering and countering the financing of terrorism (AML/CFT) regulation, the significant cost burden imposed on remittances that are cashed out instead of received digitally, and barriers to transparency and inclusiveness.
This analysis suggests a prioritization among the existing building blocks (BBs) in the Roadmap, emphasizing in particular the global and foundational BBs, including the importance of official sector actions to address regulatory fragmentation. The paper highlights further work on AML/CFT, sanctions screening and capital controls, data messaging and digital trust, and the promotion of digital financial inclusion. The paper concludes by setting out possible flanking measures or necessary preconditions to support the Roadmap and its objectives.
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