Enhancing cross-border payments in a real-time world
Prerequisites, challenges and a possible path forward
Cross-border payments through the correspondent banking model has long been the cornerstone of supporting global trade. However, the increased burden of compliance with and evolution of anti-money laundering (AML) and combating the financing of terrorism (CFT) regulations has led to banks reducing their network as part of a de-risking movement.
This reduction in global reach, alongside changes in the payments arena such as the introduction of real-time payments platforms, has led to a growing demand to revisit how cross-border payments are handled.