Financial Stability Board released report to the Group of 20 on actions taken to assess and address the decline in correspondent banking On 6 November 2015, the Financial Stability Board (FSB) published its report to the Group of 20 (G20) on actions taken to assess and address the decline in correspondent banking.
The Global Legal Entity Identifier Foundation (GLEIF) is confident that in 2016 we will continue to witness widespread LEI adoption.
Authorities and local banks predominantly mentioned overall risk appetite and lower profitability as causes, which may in part be affected by money laundering risk concerns and higher costs from extra due diligence.” The FSB will continue to work in partnership with the Basel Committee for Banking Supervision (BCBS), Committee on Payments and Market Infrastructures (CPMI), Financial Action Task Force (FATF), International Monetary Fund (IMF), LEI Regulatory Oversight Committee (LEI ROC) and World Bank to address this issue through a four-point action plan.
It aims to further examine the dimensions and implications of the issue, clarify regulatory expectations, build domestic capacity within jurisdictions that are home to affected respondent banks, and strengthen tools for due diligence by correspondent banks.
The latter “includes correspondent bank information sharing, through Know Your Customer facilities and broader use of the global LEI.” The CPMI and the LEI ROC have made proposals in these areas.
The LEI ROC is a group of over 80 public authorities, from 50 countries, established in January 2013 to coordinate and oversee the Global LEI System.