The Pacific Strengthening Correspondent Banking Relationships Project is a regional initiative implemented by the Pacific Islands Forum Secretariat (PIFS) in partnership with the World Bank to address the growing challenge of declining correspondent banking relationships across the Pacific. Given the region’s small, geographically dispersed island economies, correspondent banking services are critical for maintaining access to international trade, remittances, investment, tourism, and other cross-border financial transactions that connect Pacific communities to the global economy. However, increasing regulatory requirements, rising compliance costs, and heightened risk perceptions have led many international banks to reduce or withdraw these services, placing the region’s financial connectivity and economic resilience at risk. Recognising the importance of preserving these vital financial lifelines, PIFS, with the support of the World Bank and in close collaboration with member countries, is implementing this project to strengthen financial linkages that connect Pacific economies to global markets securely and support sustainable development. There are two components of the project that aims aims to strengthen and sustain correspondent banking relationships by supporting CBR service providers, enhancing regulatory and AML/CFT compliance frameworks, improving payment systems and regional coordination, and building institutional capacity across Pacific Island countries.

• Component I: Ensuring continuous access to CBR services.

This component includes initiatives to support the provision of temporary access to correspondent banking services through the recruitment of a service provider to ensure continuity of access in eligible Pacific island countries facing loss of CBRs in key currencies and technical assistance to identified eligible financial institutions.

• Component II: Improving the enabling and regulatory harmonisation.

This component includes support to CBR services and improve AML/CFT compliance, payment system oversight and regulation, feasibility study for a pacific payment mechanism, regional TA support and institutional capacity building and Project management, stakeholder coordination and outreach.