The United States and Australia recently co-hosted a roundtable discussion as part of the Pacific Banking Forum to tackle issues related to de-risking and the decline of correspondent banking relationships in the Pacific region. This event, held in Washington, was a follow-up to the Pacific Banking Forum (PBF) conducted from July 8-9 in Brisbane, Australia.

Acting Under Secretary for Terrorism and Financial Intelligence Brad Smith led the roundtable, emphasizing the importance of financial inclusion, maintaining correspondent banking relationships, and implementing robust anti-money laundering measures. "Citing the Treasury Department’s 2023 De-risking Strategy," Smith stressed that collaboration between public and private sectors is crucial for sustaining and expanding banking ties.

The roundtable saw participation from senior officials representing Pacific Island countries, Australia, New Zealand, Japan, Canada, along with representatives from international financial institutions and commercial banks. Participants provided updates on progress toward commitments made during the PBF meeting in July.

The PBF initiative was launched by President Biden and Prime Minister Albanese in October 2023 during a state visit. It aims to support sustainable access to banking services across the Pacific region.