Arab states finalize regional payment and settlement system

Arab states finalize regional payment and settlement system:

"Arab countries have finalised plans to create an independent, regional cross-border payments system after current arrangements were hit by a rise in compliance costs and downsizing by some international banks.

At present, many cross-border payments and settlements among Arab countries are carried out by correspondent banks, which act as agents for foreign financial institutions that do not have a local presence in a given country.

A tightening of anti-money laundering rules by U.S. and European banks in the last several years has added to the cost of this practice, while some banks have quit the market to focus on more lucrative areas."



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