Global Standards Proportionality Working Group (GSPWG)

The adoption of appropriate global standards for financial stability and integrity is of great importance to ensure that financial inclusion is pursued in tandem with safe and sound financial systems.

Standard-setting bodies recognize that the implementation of global standards should be proportionate, risk-based and without unintended consequences for the promotion of financial inclusion. Nonetheless, achieving proportionality at the national level can be challenging for a variety of reasons. These include:

capacity challenges in effective implementation of a risk based approach;

inter-agency coordination and data challenges; and

insufficient tools to monitor the impact of standards on sectors which may have important roles in financial inclusion.

AFI’s Global Standards Proportionality Working Group (GSPWG)

GSPWG is a platform that provides technical support to developing and emerging country policymakers to implement global standards for financial stability (e.g. the Basel Framework) and financial integrity (e.g. Financial Action Task Force [FATF] 40 Recommendations) proportionately and without unintended negative consequences for financial inclusion.

The working group supports AFI’s Global Standards and Policy Committee with respect to strategic engagements with global standard-setting bodies and leverages on AFI’s partnership with the FATF-Style Regional Bodies and the International Association of Deposit Insurers.

Members also exchange information on the opportunities and risks associated with new technologies, such as digital identity innovations, regulatory technology solutions, and the growing use of virtual assets, which could potentially impact the effectiveness of global standards and regulatory compliance.

The working group has four thematic subgroups and one taskforce:

Digital Identity and E-KYC

Virtual Assets Regulation

Stress Testing & Crisis Resolution for E-Money Providers

Climate Change, Sustainable Finance, and Financial Stability

RegTech Taskforce (Jointly with DFSWG and FIDWG)

Member
Institutions

Countries

Policy changes

Knowledge products

Chairs & Focal points

Chair

Jacinta Anyinge, Bank Uganda

Co-Chair I

Joseph Munyoro, Bank of Zambia

Co-Chair II

Phepile Dlamini, Central Bank of Eswatini

Gender Focal Point

Mariama Sillah, Bank of Gambia

Objectives

Create policy guidance and knowledge products on the proportionate implementation of global standards to strengthen and align financial integrity, financial stability and financial inclusion.

Disseminate key insights, learnings and best practices on proportionality to the broader AFI membership.

Conduct peer-reviews of policies and regulations, which aim to promote proportionality in practice.

Provide technical support to the AFI Global Standards and Policy Committee (GSPC)

Engage in in-country implementation issues with SSB regional bodies.

Member Institutions

Banco Central de Reserva de El Salvador
Banco Central del Paraguay
Banco de Moçambique
Banco Central de São Tomé e Príncipe
Banco Nacional de Angola
Bangko Sentral ng Pilipinas
Bangladesh Bank
Bank Al-Maghrib
Bank Negara Malaysia
Bank of Ghana
Bank of Namibia
Bank of Papua New Guinea
Bank of Sierra Leone
Bank of Tanzania
Bank of Uganda
Bank of Zambia
Banque Centrale de Madagascar
Banque Centrale de Mauritanie
Banque Centrale de Tunisie
Banque Centrale des Etats de l’Afrique de l’Ouest (BCEAO)
Banque de la République du Burundi
Central Bank of Armenia
Central Bank of Egypt
Central Bank of Eswatini
Central Bank of Jordan
Central Bank of Kenya
Central Bank of Lesotho
Central Bank of Liberia
Central Bank of Nigeria
Central Bank of Solomon Islands
Central Bank of Sri Lanka
Central Bank of the Bahamas
Central Bank of The Gambia
Central Bank of the Republic of Uzbekistan
Centrale Bank van Suriname
Central Bank of Sudan
Comisión Nacional Bancaria y de Valores de México (CNBV)
Financial Regulatory Commission of Mongolia
Comisión Nacional de Bancos y Seguros de Honduras
Maldives Monetary Authority
Ministère de l’Economie, des Finances et du Budget du Sénégal
Ministry of Finance – Eswatini
Ministry of Finance and Economic Development Zimbabwe
Ministry of Finance Zambia
National Bank of Cambodia
National Bank of Rwanda
National Bank of Tajikistan
Nepal Rastra Bank
Palestine Monetary Authority
People’s Bank of China
Reserve Bank of Fiji
Reserve Bank of Malawi
Reserve Bank of Vanuatu
Reserve Bank of Zimbabwe
South African Reserve Bank
Superintendencia de la Economía Popular y Solidaria de Ecuador
Superintendencia General de Entidades Financieras de Costa Rica (SUGEF)
Superintendencia de Bancos de la República Dominicana

Subgroups & Planned Activities

Inclusive Financial Integrity

Objective: To develop an M&E framework to monitor progress and challenges in implementing Inclusive Financial Integrity across the AFI network.

Deliverable: M&E framework for Inclusive Financial Integrity

Inclusive Financial Stability

Objective: To support members in aligning the goals of financial stability and financial inclusion, with practical guidance on the incorporation of proportionality, financial inclusion considerations, and climate risk considerations into financial stability frameworks and policies.

Deliverable: Inclusive Financial Stability Toolkit

Virtual Assets Policy/VASP & Regulation

Objective: T To support the AFI network with policy guidance and approaches to:
financial inclusion use cases for VAs and VASPs particularly from experiences and proven pilots led in the private and humanitarian sectors whereby there have been concrete instances or evidence of the advancement of financial inclusion; and
policy and regulatory approaches to VAs and VASPs, including how the balance between financial inclusion, financial integrity, financial stability and consumer protection can be achieved.

Deliverable: Guideline on Regulation of Virtual Assetsity

Financial Inclusion Country Assessment

Objective: To assist members impartially self-evaluate their current state of progress in advancing financial inclusion in their jurisdiction and receive review inputs from peers from within the network, as well as identify forward priorities and policy recommendations to support members’ financial inclusion strategies.

Deliverable: AFI’s 2024 Pilot Financial Inclusion Country Assessment

Maya Declarations

GSP, as a thematic area, covers a total of 18 Maya Declaration targets, including those related to the proportionate implementation of both financial integrity and financial stability standards.

Primary thematic area

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Consumer Empowerment  and Market Conduct

Consumer Protection

Financial Literacy and Financial Education

Maya Declaration targets

Completed

In progress

Completion rate

55%

52%

54%

53%

48%

49%

40,1%

38%

39%

44%

46,5%

GSPWG & Gender

While financial integrity and stability are the key mandates of financial regulators globally, financial inclusion plays a key role in crisis mitigation, economic recovery and resilience building. The implementation of global standards for financial integrity and stability may have unintended adverse consequences on financial inclusion of women and other disadvantaged groups. For instance, women are less likely to hold the requisite documents for customer identification.

In addition, most women may not have access to collateral that is sufficient to secure a loan. It is therefore crucial that global standards are implemented proportionately while considering the inherent risks and being attentive to gender considerations.

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