The Bank for International Settlements is a bank for central banks, not for you

The Bank for International Settlements (BIS) is an organization owned by 63 central banks around the world. It does not take deposits from individuals, businesses, or even commercial banks. Instead, it holds accounts for central banks—the institutions that control money supply and interest rates in their countries—and helps them coordinate on financial rules that affect how money moves across borders.

If you send money internationally or hold accounts in multiple countries, BIS decisions shape the infrastructure that makes those transfers possible. The organization sets standards for how banks report risk, how much capital they must hold, and how they settle payments with each other. You will not interact with BIS directly, but the banks you use follow its guidance.

BIS is headquartered in Basel, Switzerland, and has been operating since 1930. It was originally created to manage payments after World War I, but its role expanded significantly after the 2008 financial crisis, when central banks realized they needed common rules to prevent one country's banking collapse from triggering a global one.

Key Takeaways

  • BIS is owned by central banks and sets standards that commercial banks must follow when moving money internationally.
  • The organization does not handle your personal or business accounts—it works behind the scenes between governments and their central banks.
  • BIS standards affect how long international transfers take, how much banks charge for them, and whether a transfer is even possible.
  • If you are sending money across borders or holding accounts in different countries, BIS rules determine the rails your money travels on.

How BIS shapes international payments

When you send money from a US bank account to someone in Germany, your bank does not call a German bank directly. Instead, it uses a network of correspondent banks—intermediaries that hold accounts with each other—to move the funds. BIS sets the standards these banks follow when they do this work.

The most important standard is called Basel III, a set of rules about how much capital banks must hold in reserve. If a bank does not hold enough capital, it cannot safely process large international transfers. BIS also publishes guidance on how banks should report their exposure to different countries and currencies, which affects whether they will accept transfers to or from certain regions.

Another BIS function is operating CPSS (the Committee on Payments and Market Infrastructures), which sets standards for payment systems themselves. These standards determine how quickly payments settle, what information must travel with each payment, and what happens if something goes wrong mid-transfer. When a transfer takes three to five business days instead of one, it is often because the banks involved are following CPSS standards about how to verify the sender and receiver.

Why BIS matters if you send money abroad

International transfers are slower and more expensive than domestic ones partly because of BIS standards. Banks must verify that transfers do not violate sanctions, that the sender and receiver are not on terrorism watchlists, and that the money is not connected to money laundering. These checks exist because BIS members agreed they were necessary to keep the global financial system stable.

If you are sending money to a country that BIS members view as high-risk—or if you are sending a large amount—your bank may freeze the transfer while it conducts extra checks. This is not your bank being difficult; it is your bank following rules that BIS helped establish. The same applies if you are trying to move money out of a country with capital controls: BIS standards shape how strictly those controls are enforced.

For people who hold accounts in multiple countries, BIS standards also affect which banks will do business with each other. Some banks have stopped serving customers in certain countries because the compliance burden—the cost of following all the rules—became too high. When that happens, it is often because BIS standards made it more expensive or risky to maintain those relationships.

The difference between BIS and other international financial bodies

BIS is often confused with the International Monetary Fund (IMF) and the World Bank, but they do different work. The IMF lends money to countries in financial crisis and monitors their economic policies. The World Bank funds development projects in poorer countries. BIS does neither. It only sets standards for how banks operate and holds accounts for central banks.

BIS also differs from the Financial Stability Board (FSB), which coordinates financial regulation across countries. The FSB makes recommendations; BIS members implement them. Think of BIS as the technical body that turns broad agreements into specific rules that banks must follow.

If you are dealing with a sanctions issue or trying to understand why a transfer was blocked, the relevant body is usually your country's financial regulator or the US Treasury Department (if you are in the US), not BIS. BIS sets the framework, but individual countries enforce it.

What BIS does not do

BIS does not regulate individual banks—that is the job of each country's central bank and financial regulator. It does not set interest rates or control inflation, though it publishes research that influences how central banks think about these issues. It does not have the power to force a country to change its financial rules, though it can pressure central banks through peer pressure and by making non-compliance costly.

BIS also does not handle consumer complaints or disputes. If your international transfer was delayed or lost, you contact your bank, not BIS. If your bank violated BIS standards, you report it to your country's financial regulator, not BIS.

How BIS decisions reach you

BIS publishes standards and guidance that central banks then adopt into their own rules. Those rules become requirements that commercial banks must follow. For example, BIS published guidance on how banks should handle cryptocurrency transactions. Central banks in different countries interpreted this guidance differently, and now some banks accept crypto transfers while others refuse them entirely.

The lag between a BIS decision and a change you notice at your bank can be months or years. BIS might publish a new standard in January, central banks might adopt it in June, and your bank might implement it in September. By the time you see the effect—a longer hold on transfers, a new fee, or a restriction on who you can send money to—the decision is already months old.

Frequently Asked Questions

Can I contact BIS if my international transfer is stuck?

No. BIS does not handle individual transfers or customer disputes. Contact your bank first, then your country's financial regulator if your bank does not resolve the issue. BIS sets the rules your bank follows, but it does not enforce them against individual customers.

Does BIS control exchange rates?

No. Exchange rates are set by currency markets and influenced by central banks, but BIS does not set them. BIS does publish research on currency markets and coordinates between central banks on how to respond to extreme volatility, but it does not fix or control rates.

Why do some countries not use BIS standards?

BIS membership is voluntary, and 63 central banks have chosen to join. Countries that are not members—or that choose not to follow BIS guidance—may have different banking standards. However, if they want to participate in the global financial system, they usually adopt BIS standards anyway because other banks expect them.

Does BIS prevent money laundering?

BIS sets standards that make money laundering harder, but it does not detect or prosecute it. Individual banks and financial regulators are responsible for spotting suspicious activity. BIS standards require banks to report certain transactions and verify customer identity, which makes the laundering process slower and riskier.

How often does BIS change its rules?

BIS publishes new guidance and updates existing standards regularly, but major changes happen every few years. Basel III was published in 2010 and is still being implemented. Smaller updates happen more often, especially in response to new risks like cyber attacks or new technologies like digital currencies.