A recent CPMI report on interlinking payment systems published last July provides a comprehensive overview of the many legal frictions; they range from currency regulations to the increased legal risks borne by interconnected systems, especially in terms of participant default, settlement finality, netting, novation and collateral enforcement provisions.
Making cross-border payments also calls for a consistent implementation of anti-money laundering and countering the financing of terrorism regulations, mutually agreed data models and identifiers, and data exchange protocols that ensure data privacy and integrity across jurisdictions.