Pacific leaders move to protect international banking links

Pacific countries are stepping up efforts to safeguard their access to the global financial system as regional leaders review progress on a project to strengthen correspondent banking relationships across the Blue Pacific.

The second Project Steering Committee Meeting of the Pacific Strengthening Correspondent Banking Relationships (CBR) Project was held in Majuro, Republic of the Marshall Islands, bringing together government representatives and development partners to review implementation progress and set priorities for the next phase.

Correspondent banking enables Pacific countries to make international payments, support trade, receive remittances, facilitate tourism transactions and maintain links with global markets.

Discussions focused on the Pacific Payments Mechanism Feasibility Study, the CBR Service Provider initiative, payment system support, Anti-Money Laundering and Combating the Financing of Terrorism measures, the CBR Resilience Index, data collection and project management.

Pacific Islands Forum secretary-general Baron Waqa said strengthening correspondent banking access was critical to the region's development.

"Correspondent banking is more than a financial sector issue, it is a regional development priority."

Mr Waqa said the project supported the vision of the Pacific Islands Forum's 2050 Strategy for the Blue Pacific Continent by promoting a connected, resilient and economically secure region.

The Pacific Strengthening CBR Project is supported by the World Bank and implemented by the Pacific Islands Forum Secretariat in partnership with participating Pacific Island countries.

The project involves eight Forum members — Fiji, Kiribati, the Republic of the Marshall Islands, Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu — with the aim of reducing the risk of losing correspondent banking services and strengthening regional financial resilience.

Outcomes from the meeting are expected to guide the next phase of the project as Pacific countries pursue practical solutions to maintain reliable access to international banking services.