Fed proposes allowing intermediaries for FedNow cross-border payments

On April 8, the Fed requested comment on a proposed rule amending subpart C of Regulation J to permit banks and credit unions to use intermediaries other than Reserve Banks to transfer funds through the FedNow Service. As previously covered by InfoBytes, the FedNow Service launched in July 2023 as an instant interbank payment system for banks and credit unions to transfer money for their customers. Currently, a FedNow transfer may include only two U.S. banks other than a Reserve Bank,... By: Orrick, Herrington & Sutcliffe LLP