Australia is providing $6.3 million to strengthen banking services in the Pacific, ensuring financial infrastructure remains operational across the region. Treasurer Jim Chalmers announced the funding, emphasizing the importance of Australian banks like Westpac and ANZ in the Pacific.
“The message we are sending today to the entire Pacific family is clear: you can bank on us,” Chalmers said.
The funds will develop digital identity infrastructure and improve compliance with anti-money laundering and counter-terrorism financing requirements. Speaking at the Pacific Banking Forum in Brisbane, Chalmers highlighted the importance of these services for local communities.
“We know how critical these services are for local communities, which is why we have been actively talking to all the major Australian banks,” he said. “The key to any lasting solution is rebuilding robust financial markets infrastructure across all Pacific nations.”
Of the $6.3 million, $2.9 million will go to the World Bank to help develop digital infrastructure in Pacific nations, and $1.7 million will enhance anti-money laundering compliance. The two-day forum, co-hosted by Canberra and Washington, includes 300 participants from Pacific leaders, commercial banks, and international organizations like the International Monetary Fund.
Security concerns, including China’s growing influence in the region, have been linked to the decline in bank services. Last April, Nauru signed an agreement with the state-owned Bank of China after Bendigo & Adelaide Bank announced its withdrawal by December.
Opposition foreign spokesman Simon Birmingham emphasized the importance of the forum. “I want to see Australia working with international partners and particularly the Pacific Island nations, to come up with Pacific-led solutions that give them strong, credible banking systems,” he said.
