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Brent Neiman, the US Treasury’s assistant secretary for international finance, has cautioned that new cross-border payment systems could threaten global financial stability if they sidestep established anti-money laundering (AML) standards.
“The United States must lead when it comes to cross-border payments, to maximise the chances that any new systems with significant international usage reach the quality and standards we prefer,” Neiman said, during a Federal Reserve Bank of New York conference.
Whilst not naming specific initiatives, his comments follow a recent announcement from BRICS leaders outlining their intention to create a payments framework independent of Western systems.
Neiman emphasised that “enhancing connectivity” with the US could benefit trading partners united by “a deeper and more transparent commitment to shared policy goals, like combatting illicit finance”.
He argued for developing clearer regulatory frameworks for stablecoins and federal payments, noting the current patchwork of state-by-state oversight for non-bank payment providers.
“Making the dollar-oriented system faster and more efficient would strengthen our hand in upholding US values like privacy and in bolstering both our national security and that of our allies,” he said.
Neiman, who confirmed his forthcoming departure following recent US elections, stressed that the cross-border payments policy enjoys broad bipartisan support.
The remarks were delivered at a New York Fed conference examining structural shifts in foreign exchange markets, including changes in market participants, trading jurisdictions and instruments.
