Report to the G20 on actions taken to assess and address the decline in correspondent banking

The Report to the G20 on actions taken to assess and address the decline in correspondent banking provides a report on work by the FSB in partnership with other organisations to examine the extent and causes of banks’ withdrawal from correspondent banking and the implications for affected jurisdictions. A World Bank survey commissioned by the FSB finds that almost half of the emerging market and developing economies surveyed have experienced a decline in correspondent banking services, particularly in the Caribbean, East Asia Pacific and Eastern Europe & Central Asia. The main drivers for the reduction, as reported by banks and authorities, in correspondent banking were concerns about money laundering and terrorism financing risks in affected jurisdictions, overall risk appetite and lack of profitability.