Patchy Progress On Remittance Oversight Hampers De-Risking Fight

A two-speed approach to arrest the decline in correspondent banking relationships is emerging, an influential monitoring group warned on Wednesday, with some jurisdictions making leaps in regulatory oversight of money remitters while others have made scant progress.

Banks in developed economies have jettisoned relationships with remittance providers over concerns they present a high risk in terms of money laundering and terrorist financing, a practice known as de-risking.

Cheap and timely remittance payments from citizens working abroad are seen as a crucial path through which many poorer economies can fast-track growth, but this has long been threatened by banks’ aversion to the low-margin sector.

To continue reading...

Our Key Benefits

PaymentsCompliance is a premium information service for compliance, legal and regulatory professionals. Our award-winning regulatory monitoring platform is used by many of the world's leading payment services providers and e-money institutions, regulators, challenger banks, fintechs and law firms.

We keep our clients informed of critical regulatory change and help them understand, with in-depth analysis, when change is coming and the implications for their organisation.

We provide our clients with a quantifiable and significant ROI by reducing the amount of time and money spent monitoring and analysing regulatory environments in multiple jurisdictions.