Complementary or competitive? The role of payments market infrastructures and correspondent banks in instant international payments
Instant payment services are being developed by payment market infrastructures (PMIs) all over the world. Banks also see real-time services from PMIs as an opportunity to develop new products. The benefits these domestic instant payments systems bring will also be felt in cross-border payments once the systems start to inter-operate. But the barriers to achieve this goal are not only technological. They also lie in the need to incorporate the foreign exchange component, comply with Know Your Client (KYC), anti-money laundering (AML) and sanctions screening obligations, offer settlement finality outside a currency zone, and respect local market practices. In this session, payments industry experts will explore how these barriers can be overcome.