For Immediate Release
[City, Date] – In a significant move to streamline international transactions and alleviate foreign‑exchange (FX) pain points, regulators and industry stakeholders today announced the rollout of new rules designed to reduce friction in cross‑border payments. These changes mark a concerted effort to reshape how businesses and consumers move money across borders, aiming for greater speed, transparency and cost‑efficiency.
Key Highlights
- The new framework introduces mandatory transparency around FX conversion and pricing, ensuring payers and beneficiaries know in advance the exact cost and exchange rate applied.
- Payment systems will be required to adopt standardised data formats and messaging, reducing mismatches and delays in processing cross‑border transactions.
- Expanded interoperability between jurisdictions will drive the ability for funds to settle faster and more reliably, including beyond traditional business hours.
- Regulatory oversight will be strengthened for non‑bank payment service providers (PSPs) involved in FX and cross‑border flows, ensuring compliance with anti‑money‑laundering (AML) and sanctions obligations.
- For importers, exporters and remitters, the rules aim to lower hidden costs and surprise charges arising from currency conversion spreads, intermediary bank fees and opaque settlement chains.
Why These Rules Matter
Cross‑border payments have long been flagged as inefficient and costly. According to industry analysis, senders can lose up to 5–10% of the transaction value due to fees, currency spreads and lack of disclosure.
Moreover, the Financial Stability Board (FSB) notes that inconsistent legal frameworks, data mismatches and fragmented infrastructure constitute key sources of ‘frictions’ in cross‑border payments.
By addressing those root causes, the new regulatory package is designed to support faster, cheaper, more transparent and inclusive cross‑border payment services.
What Has Changed
FX Cost Transparency
Under the new rules, payment providers must display:
- The exchange rate to be applied at the time of conversion.
- All fees, mark‑ups, routing charges, and intermediary costs separately.
- The exact amount the beneficiary will receive in their local currency.
This clarity is intended to prevent unexpected currency losses and buried fees.
Enhanced Data Standards & Messaging
Aligned with global efforts such as the ISO 20022 standard, the new rules require PSPs and banks to use richer, structured messaging so that data flows seamlessly across borders, reducing manual interventions and delays.
This standardisation improves straight‑through‑processing (STP) rates and improves traceability for FX conversions and settlement.
Inter‑Jurisdictional Infrastructure & Scheme Rules
The rules formalise the linkage between fast‑payment systems in different countries, enabling near‑real‑time settlement of low‑value cross‑border payments in some corridors.
Governance frameworks now require participating jurisdictions to align their rules for access, participant eligibility, settlement finality, and FX risk management.
Regulatory Oversight for Non‑Banks
Recognising the growing role of non‑bank PSPs in FX and payments, the package extends licensing, supervision and risk‑management requirements to those providers offering cross‑border FX services and payment rails. This helps ensure consistent standards and regulatory coverage.
Impact on Key Stakeholders
Importers & Exporters: With clearer FX rates and lower hidden costs, firms trading internationally will gain more predictability in costs and better margin control.
Remittance Senders & Recipients: Individuals sending money home will see reduced currency‑conversion losses and fewer surprises in the amount finally received.
Payment Service Providers & Banks: While initial compliance, systems upgrades and messaging changes will involve cost, the long‑term benefits include higher volumes, fewer manual processing delays and improved customer trust.
Regulators & Infrastructure Operators: By raising transparency and reducing fragmentation, the rules support financial‑stability objectives while fostering innovation in cross‑border payments.
Timeline and Implementation
The rules are phased in as follows:
- Short term (next 3‑6 months): Disclosure and transparency requirements become mandatory for new cross‑border FX flows.
- Medium term (within 12 months): Mandatory adoption of harmonised messaging and data‑format standards across major corridors; expanded regulatory coverage of non‑bank PSPs.
- Long term (18–24 months): Full inter‑jurisdictional connectivity of fast‑payment rails in key corridors; review and enforcement of FX pricing benchmarks and monitoring of cost‑reduction targets.
Why Now?
A perfect storm of global factors has prompted the change: the rise in digital commerce following the pandemic, growing international trade flows, heightened FX volatility, increasing consumer expectations for instant cross‑border transfers, and international pressure to meet the G20‑endorsed targets for cheaper, faster and more transparent cross‑border payments.
“Faster, cheaper, more transparent and more inclusive cross‑border payment services offer widespread benefits for citizens and economies worldwide,” warned the Federal Reserve in a recent address.
Stakeholders are urged to review the detailed rulebook released by the relevant regulatory authority and begin planning system upgrades, partner integrations and staff training now. Early adopters in appealing market corridors will gain a competitive edge and quicker access to the benefits of improved FX transparency and speed.
For firms with global operations—or those serving customers across borders—now is the moment to audit existing FX and payments practices, identify gaps in disclosure, throttle down hidden FX mark‑ups and ensure readiness for the new transparency regime.
External Resources
- Learn more about the broader international initiative to enhance cross‑border payments: see the FSB’s “G20 Roadmap for Enhancing Cross‑border Payments”. Read the full report
- For insights on how traditional FX and correspondent‑banking models contribute to friction and cost, visit the JPMorgan analysis “Cross‑Border Payments and Foreign Exchange: Recognising the Friction”. Explore the analysis
Organisation Name is a global‑scale payments and financial‑services operator committed to enabling seamless, cost‑efficient and transparent cross‑border payment experiences for businesses and individuals. With this regulatory evolution, we reaffirm our commitment to innovation, compliance and customer‑centric operations.
