WASHINGTON – The United States and Australia hosted the Pacific Banking Forum from July 8-9 in Brisbane, Australia, to address the urgent issue of 'de-risking' and the decline of correspondent banking relationships (CBRs) in the Pacific. Initiated by President Joe Biden and Prime Minister Anthony Albanese, the Forum gathered Pacific Island Finance Ministers, Central Bank Governors, regulators, international financial institutions (IFIs), multilateral development banks, policymakers, Financial Intelligence Units, and commercial banks. Senior officials from the U.S., Australia, New Zealand, and Japan also participated. The U.S. delegation was led by Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian Nelson.
The Forum supported the Pacific Islands Forum Secretariat’s CBR Roadmap, a multi-year plan with recommendations for Pacific Island Countries and development partners to address the decline of CBRs. It aimed to convene governments, regulators, and correspondent banks to understand key issues and identify potential solutions.
At the conclusion of the Forum, delegates released an outcomes statement with key commitments:
- Support for exploring regional solutions to address long-standing structural issues through the World Bank’s proposed Pacific Strengthening Correspondent Banking Relationships project.
- Commitments from Pacific Island nation delegates to adhere to Financial Action Task Force (FATF) Standards and participate in the Asia/Pacific Group on Money Laundering (APG) mutual evaluation process.
- Exploration of new digital systems to support financial inclusion and lower compliance costs.
- Technical assistance and capacity-building programs.
- Engagement from regulators to align supervisory practices with national foreign policy, national security, and financial inclusion objectives.
- Commitments from participating correspondent banks to provide technical feedback on the proposed World Bank project and engage with Pacific Island governments and respondent banks.
The U.S. Treasury plans to host Pacific Finance Ministers, Central Bank Governors, and Banking Commissioners during the 2024 Annual Meetings of the World Bank Group and International Monetary Fund in October to discuss progress on commitments made at the Forum.
Click here to read Outcomes Statement of the Pacific Banking Forum.
