(iii)  Inclusive  Inclusiveness is at the heart of the SDGs, and it must be at the heart of financial reform. However, recent years have seen a worrying decline in correspondent banking services, with local banks and money service businesses in numerous regions losing access to the global banking system. 12 The impact, in terms of unfulfilled economic potential, lost access to finance, and the break on sustainable development, is more than financial. Financial abandonment also has social, economic and security consequences. Communities that become financially excluded become vulnerable, particularly where lost banking services cut off income flows from remittances. Our shared challenge is to combat money laundering and terrorist financing while reversing financial abandonment. These aims are entirely compatible. Keeping flows inside the financial system, and subject to stringent due diligence against clearly articulated standards, rather than forcing them underground is the way to ensure that the financial sector continues to serve real economies around the world. To this end, the FSB, the World Bank and the IMF are implementing the four-point action plan endorsed by G20 Leaders. It is: (1)  Assessing the dimensions and implications of the issue;  (2)  Clarifying regulatory expectations by working with the FATF and relevant countries;  (3)  Expanding capacity through technical assistance in those jurisdictions whose firms have lost correspondent banking services; and  (4)  Strengthening tools for due diligence by correspondent banks.
They have been defensive when it comes to granting technical access to new and innovative payment service providers, which will limit European fintech companies’ ability to provide competitive solutions. Indeed, I fear that global giants from outside Europe will use their network power to increase their presence further. In other sectors, European companies have succeeded in achieving global reach. In the car industry, for example, European vehicles set the standard when it comes to quality and reliability. There is no reason why this success cannot be replicated in the area of payment services – or financial services in general. The way we pay in Europe is changing. Significant numbers of consumers are moving to online payment channels, with retail payments increasingly being carried out via mobile phones. At the same time, virtual currencies have long been a topic of debate – and not only among experts, either. European citizens demand pan-European services that are safe and efficient. Consequently, there is a need to look carefully at the governance and regulation of payment solutions. Many payment channels are provided by non-European companies. Although those companies comply with our legislation and use our payment infrastructure, they are, for the most part, not domiciled in Europe. This increases our dependence on third countries. In particular, we have to be mindful of the fact that extraterritorial jurisdiction could, in a worst case scenario, affect the operation of those companies and disrupt payments between European counterparties.