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 Chairman’s Summary of Outcomes from the U.S.-Gulf Correspondent Banking Public-Private Dialogue


NEW YORK - On November 4 and 5, the U.S. Department of the Treasury held a public-private dialogue on correspondent banking with Bahrain, Kuwait, Oman, Qatar, the Kingdom of Saudi Arabia (KSA), and the United Arab Emirates (UAE) at the Federal Reserve Bank of New York.  This is the first time these countries have held an event of this kind, which provided a forum for senior government officials and bank executives from the United States and the Gulf Cooperation Council (GCC) countries to discuss issues related to cross-border correspondent banking.  The event is a testament to the close working relationships between officials from the United States and the Gulf countries, and it grows out of the U.S.-GCC Summit held at Camp David in May 2015.  It also highlights the important political, economic, and financial ties between the United States and the Gulf countries.

Participants, including 20 representatives from seven jurisdictions and two organizations as well as 36 representatives from the private sector, engaged in a frank and constructive dialogue.  Daniel Glaser, Treasury Assistant Secretary for Terrorist Financing, chaired the meeting, and Treasury Under Secretary for International Affairs Nathan Sheets, Saudi Arabian Monetary Agency Governor Dr. Fahad al-Mubarak, Governor of the Central Bank of Bahrain Rasheed Mohammed al-Maraj, Governor of the Central Bank of Kuwait Mohammad Y. Al-Hashel, Governor of the Central Bank of the UAE Mubarak Al-Mansouri, and Deputy Governor of the Central Bank of Qatar Sheikh Fahad Faisal Al-Thani provided remarks.  

The dialogue enabled private sector representatives and public sector officials to better understand the correspondent banking relationships that tie the financial systems of the United States and GCC countries together, particularly relevant legal and regulatory expectations and how they are implemented, as well as and trends and challenges related to correspondent banking.  Representatives from each country gained a better, more nuanced understanding of the other countries, their regulatory frameworks, and the policies and procedures of their financial industries. 

Participants shared their expectations regarding opening and maintaining cross-border correspondent banking relationships.  On this issue, public sector authorities and private sector representatives heard directly from their counterparts about government expectations of industry; private sector implementation of those expectations, including policies, practices, and procedures; and  private sector expectations of foreign counterparts as they manage correspondent banking relationships. 

The dialogue also included discussions of financial inclusion and public and private sector perspectives on the money laundering and terrorist financing risks facing jurisdictions and institutions.  Additionally, participants discussed practices and challenges related to cross-border information sharing. 

Participants committed to continued cooperation and dialogue on these issues, including improved communication, cooperation and information sharing, and clarification of expectations relating to correspondent banks, with a view to enhancing the implementation of regulatory frameworks and international best practices, and improving regulatory effectiveness of these measures across the globe. 


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