The Albanese Government is making further investments to help prevent the loss of banking services in the Pacific.
Helping to prevent the loss of banking services in the Pacific is vital to the safety, security and economic development of our region.
The Pacific has been acutely affected by the global trend of financial institutions reducing or withdrawing banking services, with the fastest withdrawal of correspondent banking relationships anywhere in the world.
The decline of banking services affects the ability of Pacific banks and whole countries to access cross‑border payment services, connect to the global financial system and fund projects vital for economic development and essential services.
It also impacts the ability of the Pacific community and workers in Australia to send remittances home.
Building on our existing support, the Albanese Government will provide an additional $6.3 million to address these issues, including:
- $2.9 million to the World Bank to support the development of inclusive and secure digital identity infrastructure across Pacific Island Countries.
- $1.7 million to the Asian Development Bank to enhance regional compliance with anti‑money laundering and counter‑terrorism financing requirements.
- $1.7 million for the Attorney‑General’s Department to assist with criminal justice and law enforcement capacity in the region.
In total, the Albanese Government will increase Australian development support provided to the Pacific from $1.9 billion in 2023–24 to $2 billion in 2024–25.
The boost in funding announced today comes as the Albanese Government partners with the Biden Administration to deliver the landmark Pacific Banking Forum in Brisbane. The two‑day conference for world leaders is designed to address the decline of correspondent banking relationships in the Pacific.
A commitment of Prime Minister Albanese and President Joe Biden, the Forum brings together the public and private sectors including Pacific Finance Ministers and Central Bank Governors, the Pacific Islands Forum Secretariat, regulators, commercial banks, the World Bank, the Asian Development Bank, the International Monetary Fund and the Asia/Pacific Group on Money Laundering.
The funding announced today aligns with solutions discussed at the Forum, such as strengthening Pacific countries’ anti‑money laundering and counter‑terrorism financing frameworks, building up enabling infrastructure and institutional capacity, and exploring how digital financial innovations can support compliance and financial inclusion.
By supporting our partners in the Pacific, we’ll make our region more peaceful and stable and prosperous into the future and that’s what these efforts on banking are all about. Economic security and national security are the Albanese Government’s highest priorities.