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G20 - Central Bank - WEF - UN - IMF - WHO - Part 2

G20 Chair’s Summary and Outcome Document



First G20 Finance Ministers and Central Bank Governors Meeting


Bengaluru, February 24-25, 2023


All G20 Finance Ministers and Central Bank Governors agreed to paragraphs 1, 2 and paragraphs 5 to 17 along with Annexes 1 and 2.


Part 2


13. We remain committed to strengthening the global health architecture for pandemic prevention, preparedness and response (PPR) through continued collaboration and

enhanced dialogue between Finance and Health Ministries under the Joint Finance and Health Task Force (JFHTF). We continue to work closely with WHO to ensure that the Task Force complements the global pandemic PPR architecture and that there is no duplication and fragmentation of the global health governance system. We

welcome the 2023 Work Plan of the JFHTF and the invitation to selected key regional organisations to join the Task Force meetings, as appropriate, thereby increasing the voice of low-income countries. We look forward to the development of a Framework and a report for assessing economic vulnerabilities and risks arising from pandemics, considering country specific circumstances, to be led by WHO, in collaboration with the World Bank, IMF and other relevant International Financial Institutions (IFIs).

We welcome the development of a voluntary and non-binding JFHTF strategy to guide joint finance-health sector readiness to support a global response to future pandemics,

including through a report on best practices and exploring how surge financing mechanisms could be made operational, duly considering discussions in other global

forums. We encourage JFHTF’s engagement with the Health Working Group that is coordinating R&D efforts and manufacturing networks concerning medical countermeasures as a critical element in large-scale pandemic response capability. We

also look forward to the issuance of the First Call for Proposals in March 2023,

continuous engagement of JFHTF with the Pandemic Fund, encourage its

strengthening through new donor funding, and working towards increasing the capacity of developing countries for pandemic PPR.



14. We will continue our cooperation for a globally fair, sustainable and modern

international tax system fit for purpose for the 21st century. We remain committed to the swift implementation of the OECD/G20 two-pillar international tax package. We urge the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting

(“Inclusive Framework”) to finalise Pillar One, including the remaining issues so that the Multilateral Convention can be signed in the first half of 2023. We welcome the release of the GloBE Implementation Framework which facilitates implementation of setting bodies for the G20 roadmap to ensure streamlined and more secure cross-border egotiations on the Subject to Tax Rule (STTR) under Pillar Two to allow for its implementation, including through the development of a Multilateral Instrument. We recognise the need for coordinated efforts towards capacity building to implement the

two-pillar international tax package effectively. We look forward to receiving an update on the 2022 G20/OECD Roadmap on Developing Countries and International Taxation. We ask the Global Forum on Transparency and Exchange of Information for Tax Purposes (“Global Forum”) to update the G20 on the implementation of the

roadmap in its 2021 Strategy on Unleashing the Potential of Automatic Exchange of Information for Developing Countries, including efforts made to encourage such jurisdictions to adopt the Automatic Exchange of Information (AEOI) framework under the Common Reporting Standard (CRS). We also call upon the OECD to conclude the work on the implementation packages concerning the Crypto-Asset Reporting Framework and amendments to the CRS.



15. We welcome ongoing work by the FSB and international standard setters to ensure that the crypto-assets ecosystem, including so-called stablecoins, is closely monitored

and subject to robust regulation, supervision, and oversight to mitigate potential risks to financial stability. We welcome the FSB’s analytical report on decentralised finance (DeFi) and look forward to the FSB’s high-level recommendations for the supervision

and regulation of so-called stablecoins and crypto assets, respectively by our third meeting in 2023. We also welcome the IMF Discussion Paper on the macro-financial implications of Crypto Assets. We look forward to the IMF-FSB Synthesis Paper which will support a coordinated and comprehensive policy approach to crypto-assets, by considering macroeconomic and regulatory perspectives, including the full range of risks posed by crypto assets. We take note of the G20 seminar on “Policy Perspectives:


Debating the Road to Policy Consensus on Crypto Assets”. We welcome the FSB’s report on the financial stability aspects of commodities markets. We welcome the work of the FSB and standard-setting bodies to address vulnerabilities in non-bank financial intermediation (NBFIs), from a systemic perspective. We support strong global policy actions to increase NBFI resilience. Specifically, we look forward to the FSB’s recommendations on addressing structural liquidity mismatches in open-ended funds,and on addressing risks from hidden leverage. We also look forward to the work on enhancing margining practices in centrally and non-centrally cleared markets. We will continue our efforts to enhance the resilience of the financial sector, including through greater convergence in cyber incident reporting and coordination of relevant

definitions and terminologies. To address the challenges over the operational resilience of financial institutions arising from their growing reliance on critical technology service providers, including BigTech and FinTech providers, in the financial sector, we look forward to the FSB’s Consultative Report on strengthening financial institutions’ ability to manage third-party risks and outsourcing, and financial authorities’ oversight of third-party risks. We commit to timely and effective implementation of the actions under the G20 Roadmap to Enhance Cross-border Payments for faster, cheaper, more transparent and inclusive cross-border payments. We welcome the support of standard setting bodies for the G20 roadmap to ensure streamlined and more secure cross-border payments. We encourage the FSB to continue work on supporting international coordination to address climate-related financial risks. We also welcome the FSB’s efforts to evaluate the effectiveness and impact of G20 financial regulatory reforms.

We welcome the progress of work on the review of the G20/OECD Principles of Corporate Governance and look forward to the finalisation of the review.

16. We are committed to advancing financial inclusion and ensuring that no one is left behind. While significant progress has been made in recent years, we recognise that accelerated efforts are needed to address the remaining challenges and achieve the

three-fold objective of access, usage and quality of financial services for individuals and micro, small and medium-sized businesses, particularly the vulnerable and underserved. We welcome the productive discussions on Digital Public Infrastructure (DPI), especially in promoting financial inclusion at the G20 High-Level Symposium on DPIs for Innovative, Resilient, Inclusive Growth and Efficient Governance held in February 2023. By our third meeting in 2023, we look forward to the formulation of

policy recommendations for rapidly advancing financial inclusion and productivity gains through a well-designed digital financial ecosystem by leveraging DPI. We support the successful completion of the 2020 G20 Financial Inclusion Action Plan (FIAP). We look forward to progressing our efforts towards an action-oriented 2023

G20 FIAP by our third meeting in 2023 for advancing financial inclusion in the G20 and beyond.



17. We recognise the pressing need for the international community to step up its efforts to effectively combat money laundering, terrorism financing, and proliferation financing to enhance the integrity and resilience of the international financial system.

We reaffirm our commitment to deliver on the strategic priorities of the Financial Action Task Force (FATF) and its FATF Style Regional Bodies (FSRBs) in leading global action to tackle these threats. We support the ongoing work of the FATF to enhance global efforts to recover criminal proceeds. We welcome the revised FATF standards and guidance on the transparency of beneficial ownership of legal persons,

which will improve countries’ ability to identify and target illicit finance, and we

commit to the timely implementation of those standards. We look forward to the

conclusion of the FATF’s work to reinforce its standards on legal arrangements as well as relevant guidance to foster global implementation. We commit to the widest possible range of international cooperation in relation to basic and beneficial ownership information. We recognise the urgent need to establish effective anti-money laundering and counter-terrorism financing regulations and oversight of virtual assets,

especially to prevent their use in money laundering and terrorism financing, in line with FATF Standards. We support the FATF’s efforts to speed up the implementation internationally of its standards for this sector and recommit to timely implementation of these rules, including the “travel rule”. We look forward to the completion of FATF’s project on ransomware financing and welcome FATF’s ongoing initiatives to

standards.


Annex 1: Other items of work


This Annexure provides the list of the elements of the Work Plans for the workstreams under the Finance Track. The reports that may emerge from these workplans are voluntary and non-binding. Members will have the opportunity to discuss the reports in their respective working groups and workstreams.


Framework for Growth


1. G20 Report on the macroeconomic scenarios, consequences and impacts of food and energy insecurity and their implications for the global economy and in policy settings


2. G20 Report on the macroeconomic risks stemming from climate change and transition pathways.


3. Discussion of the opportunities and risks to strong, sustainable, balanced and inclusive growth, including financial globalisation.


International Financial Architecture


1. Updates from MDBs in Spring 2023 for developing and finalising the G20 Roadmap on implementing the recommendations of the CAF.


2. Exploration of ways, including through balance sheet optimisation measures and other potential avenues, to maximise MDBs’ development impact.


3. Updates from IMF on the progress of the 16th General Review of Quotas for its timely completion by 15 December 2023.


4. Exploration of opportunities for a “User manual” for the Common Framework presenting the experience of the first cases.


5. Improvements to sovereign debt restructuring by continuing the discussion on some specific debt instruments, including by discussing potential best practices for LICs on

collateralised financing practices, by exploring ways to increase private sector involvement, in particular regarding the restructuring of syndicated loans, collective action

clauses, by assessing the benefits and complications of state-contingent debt instruments (SCDI), and climate-resilient debt clauses in international sovereign bonds and in official

bilateral lending.


6. BIS report on key findings and lessons of its CBDC projects, in July 2023.


7. IMF report on the potential macro-financial implication of widespread adoption of CBDCs, in September 2023.


8. OECD report, “Towards Orderly Green Transition – Investing Requirements and

Managing Risks to Capital Flows” in July 2023.


Infrastructure


1. Continuation of the InfraTracker 2.0 to track planned infrastructure investments across G20 member economies using publicly available sources and transition it to an online tool.

2. Compilation of the scope and taxonomies related to infrastructure across G-20 economies and across International Organisations.


Sustainable Finance


1. Shared understanding of the mechanisms for the mobilization of timely and adequate climate finance including via expansion of de-risking facilities and enhanced role of

multilateral financial institutions in the G20 Sustainable Finance Report 2023.


2. Cross-cutting focus on identifying and overcoming data-related barriers to scaling investments for climate action and SDGs.


3. Continuation of monitoring and reporting of the implementation of the G20 Sustainable Finance Roadmap on the SFWG online dashboard.


International Taxation


1. OECD report on exploring the feasibility of exchange of information on a voluntary basis in respect of immovable property transactions undertaken by residents of a jurisdiction in foreign jurisdictions, considering all relevant issues including possible challenges and likely solutions.


2. Global Forum Report to assist interested jurisdictions to streamline the processes involved in obtaining consent for the use of information obtained through tax treaties for non-tax purposes, wherever provided in tax treaties. The Report will be prepared after studying the issues faced by jurisdictions in obtaining consent for such purposes and exploring potential

solutions, which could be utilised by interested jurisdictions on a bilateral and voluntary basis, while upholding the confidentiality of such information.


Financial Sector issues


1. FSB to finalise its high-level recommendations on the regulation, supervision and oversight of global stablecoins; and high-level recommendations on the regulation,

supervision and oversight of crypto-asset markets and activities by July 2023.

2. BIS to submit a report on analytical and conceptual issues and possible risk mitigation strategies related to crypto assets.


3. IMF and the FSB to jointly submit a synthesis paper integrating the macroeconomic and regulatory perspectives of crypto assets in September 2023.



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