Committee on Payments and Market Infrastructures Publishes Toolkit for Reducing Wholesale Payments Fraud

The Committee on Payments and Market Infrastructures has prepared a “toolkit” to assist central banks to reduce the risk of wholesale payments fraud related to endpoint security. The Financial Stability Institute at the Bank for International Settlements has also announced that it will make tutorials on wholesale payments security freely available to central banks on request.

Wholesale payments are those made between banks and countries and are typically high value and high volume. Central banks typically oversee payment systems and may also use them for monetary policy implementation and the maintenance of financial stability. As fraud is becoming more sophisticated, central banks must ensure the wholesale payment system is secure. The CPMI toolkit is particularly concerned with the risk of fraud at “endpoints”, the crossover points between systems. The key elements of the CPMI’s toolkit are:
 

1. Operationalizing the strategy: the CPMI’s guidance on “Reducing the risk of wholesale payments fraud related to endpoint security” was published in May 2018; it sets out seven key elements for reducing payments fraud, including the need for operators and participants to identify and understand the range of risks and to support ongoing education about risks and risk controls;
2. Promoting the strategy: central banks should consider promoting their operationalization of the strategy;
3. Taking stock of current arrangements: the CPMI has produced a set of proposed questions that would assist central banks in ascertaining the arrangements for wholesale payments endpoint security in their jurisdictions;
4. Engaging with relevant stakeholders: once action points in the central bank’s jurisdiction have been identified, they should engage with operators, participants and other stakeholders to enlist their support for the strategy;
5. Developing an action plan to operationalize the strategy: the CPMI sets out a series of emerging practices that may be utilized by central banks once risks have been identified; and
6. Monitoring progress: central banks may assign a project team to monitor progress in operationalizing the strategy, using the CPMI’s standard monitoring template.

View the CPMI's toolkit.

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