The Bank for International Settlements’ proposed harmonization requirements for cross-border payments have actually not struck the best balance, and if mandated in their present type, would make cross-border payments slower, more pricey and less available than they are today, the American Bankers Association Wednesday remark letter from ABA, according to a Wednesday remark letter from the American Bankers Association, its deal banking subsidiary BAFT and the Clearing House.
The BIS Bank for International Settlements’ Committee on Payments and Market Infrastructures is presently working to assist in a balanced adoption and usage of ISO 20022 for cross-border payments. In their remarks, the groups stated that useful factors to consider need to be taken into consideration when establishing those requirements. Specifically, the balanced requirements need to not provide choice to organization identifier codes or speedy services; much better represent the useful constraints and requirements of end users, banks and market facilities; and acknowledge existing legal requirements for information that need to be consisted of in payment messages and the requirements of monetary criminal offense stakeholders, they stated.
Among their issues, the associations stated ISO 20022 harmonization need to be motivated, not mandated; that the timeline for public remark puts U.S. execution at threat; and there is uncertainty on the scope of the requirements as they relate to non-ISO 20022-based systems. The groups likewise kept in mind that while they do not have particular worry about a few of the suggested requirements, lots of others consist of possibly severe execution issues. “For some of these requirements we request that they be issued only as recommended guidelines for user communities to consider,” they stated.