ECCB 2022-2023 Annual Report and Financial Statements

Eastern Caribbean Central Bank Annual Report 2022 - 2023

In the spirit of fair and open access to Financial Market Infrastructures (FMIs), the Bank engaged the credit union sector on access to the Eastern Caribbean Automated Clearing House (ECACH), through the office of the Caribbean Confederation of Credit Unions, and in collaboration with the ECACH.

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Wholesale Financial Market Infrastructures and Interbank Markets Modernisation of the payment and settlements system in the ECCU will necessitate enhancements to the technological infrastructure, instruments, rules and procedures, through a deliberate and collaborative approach amongst key stakeholders. The Bank, under the Caribbean Digital Transformation Project (CARDTP), commenced the recruitment of a consultant to deliver a proposal for the modernisation of the payment and settlement infrastructure in the ECCU. To this end, the consultant will deliver a report on the review of the Real Time Gross Settlement (RTGS) system and the Eastern Caribbean Automated Clearing House (ECACH), the proposed upgrades to the payments system infrastructure, and a technical blueprint for an instant payment system in the ECCU. A comprehensive Payment System Oversight Policy was developed under the CARDTP. The policy was designed, taking into consideration compliance with international standards, and best practices to support the overarching objectives of a safe, efficient, and inclusive payments and settlement system; and to provide the framework within which these objectives would be realised. The policy will be finalised and implemented over the short term. The Monetary Council approved the draft Payment System and Services Bill in July 2022, following extensive stakeholder engagements. The Bill, which was which was developed under the CARDTP, sets out

the licensing framework for payment service providers and operators and grants the ECCB licensing authority.

Over the period January to March 2023, in-country bilateral engagements were conducted with ECCU Attorneys General and Parliamentary Counsel to finalise the drafting and enhance learning, in anticipation of enactment. During those engagements, the draft Electronic Retail Payments Regulations, which will be issued under the principle Bill, was reviewed also. In order to build on the existing oversight framework and further strengthen the oversight function, a roadmap for the implementation of the oversight function was developed and will guide the development of the components for the overarching oversight framework. The roadmap outlines key elements of the framework which are: a diagnostic study of the existing oversight function; procedures for collecting and processing data, manuals for risk assessments; and manuals for implementing on-site and off-site oversight. In the spirit of fair and open access to Financial Market Infrastructures (FMIs), the Bank engaged the credit union sector on access to the ECACH, through the office of the Caribbean Confederation of Credit Unions (CCCU), and in collaboration with the ECACH. During the engagement, the Bank set expectations around ECACH access and clarified the application process and ECACH operating requirements. This approach afforded credit unions the requisite information to undertake the necessary assessments, ahead of their eligibility for ECACH membership.

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