transparency

The Push for Transparency in Cross-Border Payments

Over the past few years, the financial sector judged cross-border payments on two simple metrics: speed and cost. Financial institutions poured resources into shaving seconds off processing times and compressing intermediary fees. While those factors still matter, they are no longer the ultimate finish line. Today, the industry faces a new defining frontier in global payments: total transparency.

Spurred on by initiatives like the G20 roadmap for enhancing cross-border payments, a rare convergence is occurring. Regulators, banks, fintechs, corporates and consumers are fully aligned—universally demanding radically improved clarity and traceability. The push for total transparency, and the transition to always-on payments, is fundamentally transforming global operations.

The Tangible Benefits of Total Transparency

Transparency in payments operates on two distinct pillars. The first is upfront clarity—knowing the exact fees, FX rates and timelines before a transaction is executed. The second is real-time, end-to-end tracking—giving participants the ability to pinpoint exactly where funds sit in the global network at any given second.

When institutions implement these dual pillars, the benefits cascade across every stakeholder in the financial ecosystem.

Frantz Teissèdre, Head of Public Affairs for Cash Clearing Services | Societe Generale

Corporate Treasurers and CFOs

For corporate treasury teams, transparency fundamentally eliminates the massive reconciliation burdens that have challenged cross-border commerce for years. When intermediary banks deduct unexpected fees from a transferred amount, AR teams waste valuable hours matching short payments against original invoices. Upfront transparency eliminates that headache and time wastage.

Real-time tracking also gives precise visibility into global cash positions. This empowers CFOs and treasurers to sweep funds, capture investment opportunities and deploy capital with absolute precision.

Banks and Regulators

For financial institutions and regulatory bodies, tracking payments acts as a powerful shield. Richer, standardized data allows banks and authorities to monitor systemic risks with unprecedented accuracy. By knowing exactly where money is flowing, institutions build significantly stronger anti-fraud and anti-money laundering capabilities. Transparency effectively eliminates the dark corners where illicit financial activities typically hide.

Consumers and Individuals

While retail drivers differ from corporate needs, the underlying demand remains the same. The modern consumer—particularly gig economy workers and independent merchants—requires fast, predictable payouts with zero hidden fees. For retail clients, transparent transactions remove financial anxiety and build enduring trust in banks and the payments system.

Instant Infrastructure Raises the Bar

New instant-payment infrastructure is actively setting higher expectations for transparency. Armed with standardized messaging formats like ISO 20022, the industry now utilizes a common global language for payment data. This structured data prevents the truncation of critical information, eliminating the false-positive compliance alerts that historically trapped payments in manual review queues.

Initiatives like the One-Leg Out Instant Credit Transfer (OCT Inst) in Europe and Swift’s global digital initiatives, in which Societe Generale participates actively, are expanding domestic instant payment capabilities across borders. By injecting cross-border flows directly into instant payment rails, the industry can solve the notorious “last mile” problem of crediting the final beneficiary.

However, severe challenges remain in fully delivering on these promises. Upgrading legacy batch-processing systems requires massive structural overhauls. Achieving seamless interoperability between fragmented national systems is a highly complex hurdle. While the infrastructure raises the bar, achieving universal, friction-free transparency demands ongoing, rigorous collaboration across the global banking sector.

The 24/7/365 Ripple Effect

The demand for transparency is intimately tied to another major structural shift: the global move toward 24/7/365 payment operations. The concept of standard business hours in banking is rapidly becoming obsolete.

For banks, regulators and consumers, this always-on environment is essential. Consumers expect weekend transactions to clear instantly, while regulators recognize that systemic risks do not pause on holidays. For corporate treasuries, 24/7 operations present both a strategic advantage and a logistical challenge. Immediate visibility into weekend cash flows allows finance teams to manage liquidity proactively, reacting to sudden market shifts or geopolitical events regardless of the day of the week.

This constant motion, however, creates operational hurdles for financial institutions. Liquidity is the oil in the payments system. To process instant payments on a Sunday morning, banks must hold sufficient funds in various currencies. Because central bank real-time gross settlement (RTGS) systems typically operate on standard business schedules, sourcing emergency liquidity when markets are closed remains a significant risk.

Additionally, racing against the clock introduces chronological mismatches. If an instant payment is sent from Paris to Toronto early Monday morning, it is still Sunday night in Canada. Reconciling these value dates across global time zones requires sophisticated new frameworks.

Preparing for the Always-On Future

The trajectory is clear. We are entering an era where payments never sleep and transparency must be guaranteed. Consumers are setting the pace, demanding speedand predictability, and gaining a renewed sense of trust in financial institutions. Corporates that embrace upfront clarity and real-time tracking will unlock transformative benefits: reducing reconciliation headaches, optimizing global liquidity and increasing their defenses against fraud.

The technology is maturing and global regulations are aligning. And soon, global systems and infrastructure will be prepared to support the seamless, transparent global payments that the modern economy demands. The always-on future awaits.

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Gulf oil spill sparks transparency concerns in Mexico

March 25 (UPI) — Environmental organization Oceana has accused the Mexican government of maintaining an opaque response to an oil spill that has affected at least 390 miles of coastline in the Gulf of Mexico.

The oil has largely impacted the southern part of Veracruz state and the northern part of Tabasco state since early March, with dozens of contaminated sites still not receiving attention.

The spill has lasted nearly three weeks without an identified cause or confirmed responsible parties, affects the southwestern Gulf of Mexico reef corridor, a key ecological area that stretches along the coast between both states.

President Claudia Sheinbaum said the Office of the Attorney General is investigating, with support from environmental and energy agencies, while an interdisciplinary team analyzes the causel.

Sheinbaum stated that the spill originated from a private vessel, not state-owned oil company Pemex.

Veracruz Gov. Rocío Nahle said she will meet with officials from Petroleos Mexicanos to evaluate the installation of containment barriers in coastal areas following requests from fishermen.

Nahle said cleanup efforts are intensifying and that specialized mesh barriers are being installed at strategic points along the coastline to contain residues, with plans to expand the work depending on marine current movements.

Oceana warned that the situation constitutes a “crisis of transparency and accountability,” noting that official information has been insufficient and contradictory compared to the scale of damage reported by coastal communities.

“The opacity surrounding this spill generates impunity. Without clarity on those responsible, the causes and the impacts, it is impossible for authorities to be held accountable and guarantee reparations,” said Renata Terrazas, the group’s executive director.

According to citizen reports and local organizations, at least 51 sites with the presence of oil have been identified along the coastline, while more than two dozen have not yet received attention.

Reports also indicate impacts on key ecosystems. At least 14 marine species have died, including sea turtles, manatees and various species of fish, and thee has been damage to coral reefs and lagoon systems on which fishing communities depend.

Greenpeace Mexico released an interactive map with real-time reports on the expansion of the spill, including citizen records of thick residues and their impact on wildlife and coastal ecosystems.

However, Veracruz governor downplayed the impact, saying in interviews that it involves “traces” or small “drops” of oil on beaches and asserting that reports of dead wildlife were false — an assessment that contrasts with reports from communities and environmental organizations.

Oceana called on the government to establish “transparent, agile and binding” interagency coordination mechanisms and to adopt structural measures to prevent the Gulf from facing another environmental crisis without responsible parties or clear information.

“The Gulf of Mexico and its communities cannot continue to be treated as an environmental sacrifice zone,” Terrazas said.



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California governor candidate Matt Mahan unveils government reform plan

When he entered the race for California governor, San José Mayor Matt Mahan pitched himself as a pragmatic Democrat who would prioritize improving residents’ quality of life and government efficiency.

He unveiled a key part of that promise on Tuesday with an expansive plan to reform state government, including tying pay raises for elected officials and other top leaders to improvements on key issues, and pledging not to approve any tax increase until the state proves “that we can deliver better outcomes with the dollars we already have.”

Mahan also delivered a blistering rebuke of ballooning state spending — which, as he often points out on the campaign trail, has increased nearly 75% over the last six years. In 2020, amid the COVID-19 pandemic and accompanying economic uncertainty, California lawmakers approved a no-frills state budget that came in at $202 billion. Gov. Gavin Newsom’s latest spending proposal is nearly $349 billion.

“We have fallen into this lazy, reflexive mindset of always going back to voters and telling them that the only solution to every problem is a tax increase or a new bond or a new rule coming down from Sacramento,” Mahan said in an interview. “We need to step back and take a really hard look at our existing spending and increase the level of transparency and accountability in government.”

His eight-page plan includes ways to measure and track accountability, some of which are drawn from policies in other states. They include lobbying reforms, following up on audit recommendations and overhauling the state’s digital infrastructure and its procurement process — services Mahan described as “clunky and cumbersome.”

He also proposed a “California Performance Review,” inspired by a similar effort in Texas throughout the 1990s, that would review state agencies and solicit input from employees to eliminate waste and inefficiencies.

But near the top of the list is a proposal to tie pay raises for state officials including the governor, lawmakers and thousands of gubernatorial appointees to “measurable outcomes” in areas such as reducing homelessness and unemployment.

“People in the real world don’t get raises if they don’t do a good job,” Mahan said, “and I think it should be the same for the politicians and senior administrators who are allocating budgets, leading projects, making the big decisions on behalf of the people of California.”

Though the benchmarks would be created with input from the state Legislature, Mahan floated one example: reducing unsheltered homelessness by 5% to 10% within one year, something he said he’s accomplished three years in a row in San José.

It’s a solution one might expect from a former entrepreneur and mayor of a city in the heart of Silicon Valley. Mahan made a similar proposal at the local level last year, but it was rejected by the City Council.

“Tying pay to performance is nothing short of revolutionary in government. It’s a private-sector model that is overdue,” said former state Sen. Steve Glazer (D-Orinda), a Mahan supporter who sponsored several bills aiming to increase transparency in government.

Dozens of tech company executives are backing Mahan in the race for governor and have collectively donated millions to his campaign, as well as two independent expenditure committees supporting him.

That has raised concerns from some voters, and criticism from some of Mahan’s opponents, that he would be beholden to their interests and veto future regulations on tech or artificial intelligence companies.

Mahan has sought to dispel those concerns, arguing that he believes AI and social media platforms should be regulated. Of his plan to overhaul state information technology systems and infrastructure, he said that “whenever we spend public dollars, we have to run open, transparent and competitive procurement processes that ensure best value for the taxpayers.”

Though Mahan did not specify how he would link government outcomes to pay raises, state lawmakers have largely panned his campaign and are unlikely to get on board. The change probably would also require voter approval.

Currently, annual raises for elected officials are determined by a citizen commission that was added to the California Constitution in 1990. Changing how that panel works or imposing limits on when it can approve raises would require a constitutional amendment, which requires voter sign-off.

But Mahan contended it would be one of the fastest ways to fix a system that he says works for special interests at the expense of working people.

“I’m under no illusion that this will be easy, but I think it’s a necessary realignment of incentives,” he said. “We have to make ourselves as accountable to the people as we possibly can be.”

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Transparency in war spending lacks as Pentagon asks for $200 billion

March 24 (UPI) — Secretary of Defense Pete Hegseth plans to request $200 billion in funding from Congress as the cost of the United States’ war with Iran grows.

The request comes on top of an already record-setting Pentagon budget passed by Congress last year. Transparency over how funds are being spent continues to dwindle, experts told UPI.

As of March 15, 16 days into the war, it had cost the United States about $12 billion, Kevin Hassett, director of the National Economic Council, said in an interview on Face the Nation.

Linda Bilmes, a Harvard Kennedy School professor and former assistant secretary and chief financial officer of the U.S. Department of Commerce under the Clinton administration, told UPI the reported cost is “just the very tip of the huge iceberg.”

“The $11 billion or whatever it is that they’re quoting is just the immediate operational spend in terms of munitions and fuel and such in the first couple weeks,” Bilmes said. “That doesn’t cover any kind of medium-term expenditures around reset, repair, resupply, replenishment of weapons and systems and munitions and so forth, which is a much bigger number.”

“We’ve probably spent at least $40 billion if you bring into account already everything that has been spent and the fact that it needs to be restocked in the inventory,” Bilmes said.

There are also longer-term costs yet to come, such as the lifetime disability benefits that some 50,000 U.S. troops stationed in the Middle East will be eligible to receive.

“The vast majority of them have been exposed to toxins, contamination from oil fumes, formaldehyde, benzine, all of these things that are in the air,” Bilmes said.

In a 2011 study, Bilmes estimated that the U.S. Department of Veterans Affairs would pay up to $1 trillion in benefits to veterans of the wars in Iraq and Afghanistan in the subsequent 30 to 40 years. In 2021, that estimate increased to $2.5 trillion as the war in Afghanistan continued until August of that year.

During a press briefing last week, Hegseth said the $200 billion request to Congress would be to “ensure that our ammunition is refilled and not just refilled but above and beyond.”

“That’s like the [gross domestic product] of Hungary, the GDP of New Zealand. Medium-sized countries have GDPs the size of just this increase,” Bilmes said. “That’s $1,500 for every household in America.”

The cost of war continues to increase for U.S. taxpayers. The U.S. military is using some advanced weapons technologies, such as AI-powered systems in combat for the first time in the Iran war. Defense contractors are preparing to increase their production of weapons for the United States four times over, President Donald Trump said following a meeting with several earlier this month.

“They have agreed to quadruple production of the ‘Exquisite Class’ weaponry in that we want to reach, as rapidly as possible, the highest levels of quantity,” Trump posted on social media on March 6. “Expansion began three months prior to the meeting and plants and production of many of these weapons are already underway.”

Trump did not clarify which companies were a part of the meeting, nor did he define what “exquisite class weaponry” is.

Bill Hartung, senior research fellow at the Quincy Institute for Responsible Statecraft, told UPI it is becoming increasingly challenging to analyze defense spending as the Pentagon has become less transparent.

Hartung’s research focuses on the arms industry and the U.S. military budget. He is the former director of the Arms and Security Program and the Center for International Policy and co-director of its Sustainable Defense Task Force.

When the United States began sending defense aid to Ukraine in 2022, the government would periodically report what weapons it was sending and the types of training missions it was involved in. That is yet to take place for the war in Iran.

“In this war, really other than a leak, they really haven’t put out much in the way of justification or what exactly is being spent,” Hartung said. “They haven’t put out even a detailed budget this year the way they normally would. Normally an administration that’s been in power a while puts it out in early February. Now, we’re kind of flying blind as to what it’s exactly all going to.”

Transparency has waned from the Pentagon over the course of years. Funding put toward defense in last year’s budget reconciliation was marked in broad categories, rather than a more detailed, itemized budget.

Hartung said it was not the “normal budget process” and that hearings over the Pentagon’s budget lacked the same level of substance and oversight of years passed.

In July, the Office of the Under Secretary of Defense published its budget request for program acquisitions for the 2026 fiscal year. It requested $179.1 billion dedicated to research, development, test and evaluation of major weapon systems, $205.2 billion for procurement and $961.7 billion for total Department of Defense research and procurement. This accounts for about 40% of the department’s total funding.

The reconciliation bill passed by Congress added $150 billion in new defense spending, increasing the department’s total budget to more than $1 trillion.

Among the biggest expenditures approved by Congress were more than $25 billion for munitions and supply chain resiliency, $24 billion for integrated air and missile defense, $29 billion for shipbuilding, and $14 billion for enhancing resources for nuclear forces.

About $10 million was approved for department oversight.

The longer the war continues, the greater the cost will be to the United States. Then comes the matter of reconstruction.

The United States has historically been involved in reconstruction efforts following wars it was engaged in, including World War II and the Iraq and Afghanistan wars.

The U.S. government spent about $141 billion on reconstruction in Afghanistan between 2002 and 2021, the U.S. Government Accountability Office reported.

The war with Iran has spread beyond its borders already. As of Monday, Fatih Birol, head of the International Energy Agency, said that at least 40 energy sites have been damaged in the war, including sites belonging to U.S. allies.

Whether and to what extent the United States would be involved in reconstruction efforts in Iran and among affected allies is another variable that will not be known until the fighting stops.

Beyond the budget implications is the human cost of war. Hartung said, depending on the decision to put U.S. troops on the ground in Iran, the toll paid by service members could be larger yet. At least 13 U.S. troops have already been killed in action.

The Iran Health Ministry reported earlier this month that more than 1,200 civilians have been killed. Among them are at least 165 people killed in a strike on an elementary school for girls in Minab, Iraq. Many of the victims in the school bombing were children.

A preliminary investigation by the U.S. military has found that the United States is likely responsible for the deadly strike on the school by a Tomahawk missile on Feb. 28. The United States is the only country involved in the war that uses Tomahawk missiles.

The cost of the operation that killed the victims at the elementary school likely exceeds $1 million. A Tomahawk missile costs about $2 million.

“It could have been a million or two to hit that one target,” Hartung said. “They do have a small drone-like system they’ve been using that’s like $35,000 each but I don’t know exactly what they used. A cruise missile’s $2 million but then some of the other bombs could be a few hundred thousand but it’s remarkable how much even one strike can cost. Some of the planes are thousands or tens of thousands an hour.”

Unlike the Vietnam and Korean War and those that preceded them, the United States does not pay for its modern war efforts by raising taxes. Instead, it incurs an ever-growing debt that now accounts for about 17% of the government’s budget in fiscal year 2026.

Bilmes is writing about the changing approach to funding war in her upcoming book The Ghost Budget: Paying for America’s Wars. It is due to be released in the fall.

“We’ve borrowed every penny that has been spent right now. We’re just adding to the debt,” Bilmes said.

As the United States takes on more debt to fund a growing defense budget, it has also cut taxes, reducing revenues.

“Arguably, our approach to this, in engaging in another war of choice, is positioning us closer to another major economic crisis,” Bilmes said.

President Donald Trump presents the Commander in Chief’s Trophy to the Navy Midshipmen football team during a ceremony in the East Room of the White House on Friday. The award is presented annually to the winner of the football competition between the Navy, Air Force and Army. Navy has won the trophy back to back years and 13 times over the last 23 years. Photo by Bonnie Cash/UPI | License Photo

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