The ASEAN Central Banks’ Working Committee on Payment and Settlement Systems (WC-PSS) on 27 January 2015 adopted the Principles for Product Transparency and Disclosure on Cross-Border Trade Settlement (Principles) to improve the level of transparency on charges and service level offered by financial institutions in the ASEAN region for cross-border trade settlement.
According to the Bank of Thailand, the Principles are designed to ensure that customers have clear, timely, easily accessible, and comparable key information to make an informed decision in performing cross-border trade settlement.
Malaysia, Philippines, Singapore, and Thailand will be the first group to implement the Principles by February of 2015, while Brunei Darussalam, Cambodia, Indonesia, Laos, Myanmar, and Vietnam will adopt the Principles later this year.
The adoption of the Principles is one of the enablers to improve the efficiency level of cross-border trade settlement between ASEAN economies. In further strengthening regional economic integration, WC-PSS is also undertaking a study to establish key enablers to promote the use of local currencies for cross-border trade settlement.
It also aims to improve the payment and settlement infrastructure for ASEAN member countries that will stand ready to support the financial integration within the ASEAN Economic Community (AEC). Collaboration and support among WCPSS member countries in improving domestic payment system infrastructure is required to facilitate the establishment of safe, efficient and smooth functioning cross-border payment services.
The ASEAN Central Banks established WC-PSS in April 2010 to improve the payment and settlement systems of ASEAN countries to support financial integration within AEC. The ten member countries in WC-PSS are Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam.
WC-PSS conducts studies and provides policy recommendation to foster an integrated, safe, and efficient payment and settlement systems in the region in five main areas – trade settlement, remittances, retail payments, capital market, and standardization. This would enable businesses and individuals to make or receive electronic payments with greater convenience.