Banks Endorse Measures to Enhance Transparency in International Payments

Banks Endorse Measures to Enhance Transparency in International Payments

April 19, 2007

    NEW YORK, April 19 /Xinhua-PRNewswire/ -- The Wolfsberg
Group and The Clearing House Association L.L.C. today issued
a statement endorsing measures to enhance the transparency
of international wire transfers to promote the
effectiveness of global anti-money laundering and
anti-terrorist financing programs. The measures include
both the development of an enhanced payment message format,
which would include more detailed information about those
conducting wire transfers in certain instances, as well as
calling for the global adoption of basic messaging
principles aimed at promoting good practice with respect to
the payment system. 

    Over the last 30 years, the world's banks have
developed an efficient and effective international payment
system.  The smooth functioning of this system is vital to
global financial stability.  The steps outlined above will
both better protect the integrity of the system and help
ensure its continued efficient functioning.

    With the support of the global regulatory community and
subject to acceptance by the membership of the Society for
Worldwide Interbank Financial Telecommunication (SWIFT),
the co-operative supplying secure standardized messaging
services and interface software, it is anticipated that an
enhanced payment message format will be developed.

    The statement, including the messaging principles, is
included below.

    Members of the Wolfsberg Group are ABN AMRO, Banco
Santander Central Hispano, Bank of Tokyo - Mitsubishi UFJ,
Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman
Sachs, HSBC, JPMorgan Chase, Societe Generale, and UBS.

    Members of The Clearing House Association L.L.C. are
Bank of America, National Association; The Bank of New
York; Citibank, N.A.; Deutsche Bank Trust Company Americas;
HSBC Bank USA, National Association; JPMorgan Chase Bank,
National Association; LaSalle Bank, National Association;
UBS AG; U.S. Bank National Association; Wachovia Bank,
National Association; and Wells Fargo Bank, National
Association.

    Statement on Payment Message Standards

    We endorse the following actions to enhance
transparency regarding parties to transactions in
international payments.  These actions will promote the
effectiveness of risk-based programs designed to reduce
vulnerabilities associated with financial intermediation
and enable banks to avoid the use of their facilities by
individuals and organizations that the banks would not
accept as their own customers, including, most
particularly, those engaged in money laundering, terrorist
financing or transactions in violation of relevant
sanctions.

    These actions are: (i) the creation of a new or
enhanced SWIFT payment message format for third-party cover
payments that enables information regarding the originator
and the beneficiary to be included; and (ii) the adoption
of certain basic payment message standards within the
banking industry.

    With the support of the global regulatory community,
and assuming acceptance by the SWIFT membership, it is
anticipated that an appropriate message format change could
be implemented as early as November 2008.

    The four payment message standards that should be
observed by all financial institutions are: 

    -- Financial institutions should not omit, delete or
alter information 
       in payment messages or orders for the purpose of
avoiding detection 
       of that information by any other financial
institution in the 
       payment process.

    -- Financial institutions should not use any particular
payment message 
       for the purpose of avoiding detection of information
by any other 
       financial institution in the payment process.  

    -- Subject to all applicable laws, financial
institutions should 
       cooperate as fully as practicable with other
financial institutions 
       in the payment process when requested to provide
information about 
       the parties involved.

    -- Financial institutions should strongly encourage
their correspondent 
       banks to observe these principles.

    The major financial institutions that have developed
and will observe these standards will also strongly
encourage their correspondent banks to observe them.  To be
successful, however, this initiative must necessarily
involve the public and private sectors.  The effectiveness
of these standards requires adherence by the financial
institutions originating payment messages and encouragement
of their adherence by their regulators.






    For more information, please contact:

     Media contacts: For the Wolfsberg Group

      David Bagley, Co-Chair
      Tel:   [phone]
      Email: [e-mail] 

      Philipp von Turk, Co-Chair 
      Tel:   [phone]
      Email: [e-mail]

     Media contacts: For The Clearing House Association
L.L.C.

      Greg Berardi 
      Tel:    [phone],
      Mobile: [phone]
      Email:  [e-mail]

      Chip Savidge
      Tel:    [phone]
      Mobile: [phone]
      Email:  [e-mail]