ECCB 2023-2024 Annual Report

EASTERN CARIBBEAN CENTRAL BANK ANNUAL REPORT 2023 - 2024

ECCU P ayment S ystem O versight and C ooperation The Bank continued its regulatory oversight of the operations of Financial Market Infrastructures (FMIs) within the ECCU, to ensure compliance with the Principles for Financial Market Infrastructure (PFMI) standards. The Bank refined the enhanced Payment System Oversight Policy Framework, which was developed to support the public policy objectives of maintaining and promoting safety, efficiency and inclusivity in payments and settlement systems. Thereafter, the stakeholder engagement process commenced. The transformation of the oversight framework was prioritised, building on the existing mechanisms for the execution of core oversight activities: monitoring, collecting and managing of data, inspections, and risk management. Manuals were developed under the Caribbean Regional Digital Transformation Project (CARDTP ) to guide the execution of oversight activities including the following: 1. Monitoring the Payment and Settlement System; 2. Collecting, Processing and Managing Data and Other Information; 3. Conducting Oversight Inspections; and 4. Assessing and Managing Payment System Risks and Risk Models. Additionally, the Bank developed Guidelines for the Designation of Payment and Settlements Systems in the ECCU and Criteria for Fit and Proper Persons. The Bank also undertook a Diagnostic Study of the Payment System Oversight Framework.

R eal T ime G ross S ettlement S ystem and E astern C aribbean A utomated C learing H ouse The OECS Commission engaged a specialist consultant under the CARDTP, to conduct a review of the Real Time Gross Settlement System (RTGSS) and Eastern Caribbean Automated Clearing House (ECACH). The purpose of the review was to recommend upgrades to the payments system infrastructure, and to develop a technical blueprint for an Instant Payment System (IPS) for the ECCU. The consultancy commenced in mid-December 2023 and is expected to span a nine-month period. Stakeholders’ meetings were held over the period 19 February to 1 March 2024. The objective of the discussions was to engage stakeholders from across the ECCU to gather intelligence on the payments infrastructure, issues and challenges, and requirements. The meetings culminated in a two-day IPS workshop at the Bank’s Headquarters for a broad section of public and private sector stakeholders, including government officials, financial market infrastructures (FMIs), LFIs and non-bank financial institutions (NBFIs). O pening A ccess to the E astern C aribbean A utomated C learing H ouse Engagements with the Caribbean Confederation of Credit Unions and ECACH to advance the initiative to allow access by credit unions to the ECACH are ongoing. The on-boarding of the Eastern Caribbean Central Securities Depository and a licensed NBFI to the ECACH is progress.

VIEW- General Manager, Eastern Caribbean Automated Clearing House - Philomena Lee - explains how the ACH works for the people of the ECCU

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