Markets Wired

WASHINGTON – Today, the United States and Australia co-hosted the Pacific Banking Forum Roundtable to address de-risking and the decline of correspondent banking relationships in the Pacific.  This meeting of key public- and private-sector stakeholders was a direct deliverable from the Pacific Banking Forum (PBF) held from July 8-9 in Brisbane, Australia.  Acting Under Secretary for Terrorism and Financial Intelligence Brad Smith convened the Roundtable, underscoring the promotion of financial inclusion, preservation of correspondent banking relationships, and implementation of effective anti-money laundering and countering the financing of terrorism controls.  Citing the Treasury Department’s 2023 De-risking Strategy, Acting Under Secretary Smith highlighted the important role for public and private sector collaboration and collective action – such as the PBF – as the most effective path to maintain and expand banking relationships.  Roundtable participants included senior officials from Pacific Island countries, the Pacific Island Forum Secretariat, Australia, New Zealand, Japan, Canada, as well as representatives from international financial institutions, multilateral development banks, commercial banks, and bank regulators.  Participants shared updates on progress toward commitments made following the PBF meeting in July.  The PBF is an initiative launched by President Biden and Prime Minister Albanese in October 2023 during the Prime Minister’s State Visit committing the United States and Australia to support sustainable access to banking services in the Pacific.

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