With globalization, more financial sector standards are being set at an international level and adapted to local conditions. When international standards are being set on issues such as capital requirements, anti-money laundering, counter-terrorism financing and taxation, World Council gathers views from its member organizations, engages the global standard setters and influences guidelines before they reach the national level. World Council also provides national advocacy support for members with their regulatory bodies that are implementing new standards.
To ensure that credit unions are represented from the outset of discussions, World Council maintains an engaged stakeholder relationship with the following organizations to influence global standards:
Bank for International Settlements (BIS) Basel Committee on Banking Supervision: Advocates for clarification of regulatory capital and supervision standards that cooperative shares and supplemental capital can qualify as "common equity."
The Basel Committee on Banking Supervision is an international committee established by the Bank for International Settlements to formulate policy on prudential standards and best practices among financial regulators. The Basel Committee updated the Basel Accord in 2004 with Basel II and again in 2011 with Basel III. World Council advocates on behalf of credit union interests before the Basel Committee regarding international safety and soundness standards and other matters affecting credit unions that are within the Basel Committee's jurisdiction.
For more information on the Basel Committee on Banking Supervision, visit www.bis.org/bcbs.
International Accounting Standards Board (IASB): Advocates for accounting provision and merger standards that reflect the mutual nature of cooperative financial institutions.
The International Accounting Standards Board (IASB) is the independent standard-setting body of the International Financial Reporting Standards Foundation. IASB members develop global accounting standards for national-level accountancy boards to achieve international consistency. World Council works with IASB to monitor issues relevant to credit unions.
For more information on IASB, visit www.ifrs.org.
Financial Action Task Force (FATF): Promotes amplification and streamlining of anti-money laundering and counter-terrorism financing compliance guidelines for community financial institutions which know their members.
The Financial Action Task Force (FATF) is an inter-governmental body that sets standards, develops and promotes policies to combat money laundering and terrorist financing. FATF's 40 Recommendations on the prevention of money laundering were revised in June 2003 to include obligations for both the financial and non-financial sector.
For more information on FATF, visit www.fatf-gafi.org.
Group of 20 (G20): Advocates on behalf of credit union interests.
The G20 is comprised of finance ministers and central bank governors from 19 advanced and emerging economies in the world, as well as the European Union. Their economies collectively account for about 90% of the global gross domestic product, 80% of world trade and two-thirds of the world's population. The G20 focuses on coordinating international policies related global economic stability and growth, financial regulations and the architecture of international finance.
For more information on the G20, visit www.g20.org.
Financial Stability Board (FSB): Advocates for a simplified proportional approach to systemic risk mitigation systems which reduce the cost for cooperative financial institutions.
European Union (EU): Advocates to protect credit unions from excessive regulatory burden which impairs credit union ability to serve their members and financial inclusion of the under-banked.
World Bank (WB) and International Monetary Fund (IMF): Provides credit union supportive financial, legislative and technical guidance in the development of policies and programs.
United Nations (UN): Has special observer status at the United Nations since 1978 and takes part in UN briefings and meetings.
World Council also works with European Network of Credit Unions and our members in Europe to influence European commission policy regarding credit union legislation.
World Council issues regulatory alerts via The Telegraph as well as a compendium of country-specific activities through the biannual Global Regulatory Update, both issued via email to member CEOs and legislative contacts.
As international guidelines flow down to the national level, World Council works with our member organizations and national regulators to help interpret their application to specific credit union system environments. World Council carries out legislative and regulatory consultation and advocacy visits for member organizations.
Member Advocacy Support
World Council member organizations seeking assistance with advocacy efforts in their countries may contact:
VP and General Counsel
World Council of Credit Unions
601 Pennsylvania Ave., NW
South Bldg., Ste. 600
Washington, DC 20004-2601 USA