FSB Bank and Non-Bank Supervision (BNBS) working group recommendations The BNBS Chair provided a brief overview of the BNBS’ work to develop proposed recommendations to promote consistency in the scope and application of supervision for banks and non-banks as providers of cross-border payment services, emphasising that does not necessarily mean making them identical but that they should be proport. [...] Specific sources of inconsistency noted were “gold plating” domestic implementation or enforcement of international standards, particularly in the context of the Financial Action Task Force’s (FATF) Recommendations on anti-money laundering and countering the financing of terrorism (AML/CFT), and differences in the standards to which banks and non-banks are held when supervised by different authori. [...] Regulatory interoperability was suggested as a goal across jurisdictions in lieu of harmonising requirements, which LRS members viewed as unlikely due to both differences in jurisdictions’ policy priorities and the volume and velocity of innovation and change in the payments ecosystem. [...] Further, to both promote a level playing field and avoid potential misperceptions about the applicability to non-bank PSPs of relevant regulations and supervisory requirements, it was suggested there be clearer articulation in regulations and official guidance documents about the activities to which the requirements apply. [...] LRS members suggested that the BNBS try to avoid recommendations that add to an already complex regulatory and supervisory environment and recommended the BNBS coordinate with the Bank for International Settlements’ (BIS) Basel Committee on Banking Supervision (BCBS) and Committee on Payments and Market Infrastructures (CPMI) to avoid duplication of recommendations.
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