These agents, together with VPC AB (the Swedish central securities depository) and the Stockholm Stock Exchange, account for the central parts of the payment system. Payment information is sent between the participants through the SWIFT communications system. The Riksbank’s RIX system is the central point on which most payments and payment methods are dependant. This applies to cash payments, card payments, credit transfers, interbank loans, payments of transactions in securities and foreign exchange, etcetera. What I have just described is part of the central financial infrastructure about which most people know very little and see very little – it just exists and is expected to work. The banks are responsible for a large part of the infrastructure that meets the general public, for instance, through ATMs. In recent years, however, the general public has also become part of the infrastructure in that our own private computers can communicate with the banks' Internet banks. The importance of crisis recovery planning Today it is a matter of course for us to have access to different types of payment services. It is therefore easy for us to forget how complex and time-demanding it would actually be if we were suddenly forced to make cash payments directly to all those we need to pay money. Personally, I have many suppliers that I would need to visit at the end of every month to pay my bills.

Principle III: Remittance services should be supported by a sound, predictable, non-discriminatory and proportionate legal and regulatory framework The implementation of this principle requires special laws and regulations for remittances, while the existing or new laws should be sound, predictable, non-discriminatory and proportionate. Specially, for remittance corridors, (e.g. US-Mexico, US-Brazil, the Middle East-Philippines) both sending and receiving countries should cooperate with each other to sort out legal obstacles in transferring remittances. It is also noteworthy to consider avoiding dangers of over-regulation in remittance transfers. The Money Laundering and Terrorist Financing Acts can also deter some of the cross-border money transfers. The authorities responsible for implementation of these legislation should be mindful of the need to use judgment in dealing with genuine remittances. Principle IV: Competitive market conditions, including appropriate access to domestic payment infrastructures, should be fostered in the remittance industry. This requires the avoidance of exclusivity conditions as imposed on an agent choosing to offer only one remittance service and to promote several direct /indirect access to domestic payment systems in the country. Here too, the central banks have a role to play. The central banks and supervisors should  BIS Review 3/2007  5  work with competitive authorities to ensure consistent approaches and discourage exclusivity conditions. It is also important for supervisors to ensure that money transfer systems are not unnecessarily anti-competitive. Principle V: Remittance services should be supported by appropriate governance and risk management practices Good governance and risk management practices by all stakeholders make remittance service safer and help protect consumers.