Managing cash, liquidity and financial risk across different countries is complex for multinational companies. However, a growing number of Fortune 500 firms have established or are planning to establish regional treasury centers (RTCs) to help streamline treasury operations, boost working capital and strengthen financial control. RTCs also help companies make quicker decisions, meet regulatory requirements and manage risks more effectively, especially in volatile markets.

With these advantages, more multinational corporations (MNCs) view RTCs as a smart move toward staying competitive and running efficiently. While setting up an RTC is often perceived as highly complex, the process is more straightforward than many believe. Success hinges on careful planning and early involvement of all relevant stakeholders to ensure a smooth and effective implementation.

This practical guide and actionable checklists can help treasury professionals set up a successful RTC.

1. Defining the RTC strategy and objectives

The first step in setting up an RTC is to define its strategic purpose and objectives. This involves aligning the RTC’s goals with the broader corporate strategy, identifying the regions to be covered and determining the scope of treasury activities to be centralized.

Checklist

• Align with corporate strategy to ensure RTC objectives support your overall business goals, such as cost reduction, risk management and growth
• Identify regional scope, including countries and business units to be covered
• Determine which functions will be centralized, such as cash management, FX and funding
• Secure stakeholder buy-in through engagement with senior management, finance, tax, legal and IT teams
• Define success metrics, including key performance indicators (KPIs) such as cash visibility, cost savings and compliance rates

2. Determining location selection and regulatory assessment

Choosing the right location for an RTC is critical. Consider the regulatory environment, tax incentives, talent availability, infrastructure and proximity to business operations.

Checklist

• Assess the regulatory environment, focusing on local and regional regulations that may affect treasury operations
• Evaluate tax considerations, including tax incentives, withholding practices and double-taxation treaties
• Assess the talent pool to ensure access to skilled treasury professionals
• Review infrastructure, including banking, IT and communication infrastructure
• Consider political stability to determine country risk and geopolitical factors that could impact the RTC
• Analyze costs, comparing setup and operation costs across potential locations
• Evaluate legal entity structure to ensure it supports RTC operations

3. Design the RTC operation model

Ensure efficiency, control and scalability by designing an operating model that defines how the RTC will function, including organizational structure, governance, processes and technology.

Checklist

• Define the organizational structure, including reporting lines, roles and responsibilities
• Establish governance framework, including policies, procedures and approval hierarchies
• Create a process map that documents end-to-end treasury processes, such as payments, collections and foreign exchange (FX)
• Select a treasury platform that incorporates treasury management systems (TMS) and integration tools
• Set performance standards for RTC services with service level agreements (SLAs)
• Implement controls for fraud, cyber risk and operational risk
• Develop a change management plan for transitioning to the RTC operating model

4. Banking and cash management setup

Efficient banking and cash management are at the heart of RTC operations. This step involves selecting banking partners, setting up accounts, and implementing cash pooling and liquidity management solutions.

Checklist

• Select core banking partners through rigorous evaluation
• Develop and document bank account management policy
• Create an account structure, setting up master accounts and sub-accounts as needed
• Implement cash pooling, using physical or notional cash pooling arrangements
• Establish liquidity management processes for forecasting and managing liquidity
• Evaluate products and services—including regional or local products—that drive value for liquidity, avoid trapped cash and maintain working capital objectives
• Centralize payment processing for efficiency and control
• Integrate bank connectivity through banking platforms with the center’s TMS
• Optimize banking fees and service charges via fee negotiations

5. FX and risk management framework

Managing FX and financial risks is a key RTC function. A framework helps mitigate currency, interest-rate and counterparty risks.

Checklist

• Develop and document FX risk management policies
• Define hedging strategy and develop approaches for hedging currency exposures
• Implement risk analytics tools for measuring and monitoring risk
• Set counterparty limits for banks and financial institutions
• Establish regular risk reporting and escalation procedures
• Ensure adherence to regulatory requirements, such as the European Market Infrastructure Regulation (EMIR) and Dodd-Frank Act

6. Tax, legal and compliance considerations

RTC operations must comply with local and international tax, legal and regulatory requirements, so early engagement with tax and legal advisors is essential to avoid pitfalls.

Checklist

• Evaluate tax structuring to help optimize for transfer pricing, value-added tax (VAT) and withholding taxes
• Draft legal documentation, including intercompany agreements and service contracts
• Prepare regulatory filings
• Implement procedures such as Know Your Customer (KYC) and Anti-Money Laundering (AML)
• Ensure data privacy through compliance with data protection laws, such as the General Data Protection Regulation (GDPR)
• Prepare for audits by setting up processes for internal and external audits

7. Technology and systems integration

Technology is a key enabler for RTC efficiency. Integration of treasury systems, enterprise resource planning (ERP) platforms and banking interfaces is critical for automation and data accuracy.

Checklist

• Choose a TMS that meets RTC needs
• Integrate ERP systems by connecting RTC systems with corporate ERP platforms
• Establish secure, automated bank communications such as H2H, SWIFT and APIs
• Implement analytics tools, including for cash forecasting, reporting and analytics
• Deploy cybersecurity measures to protect sensitive financial data
• Provide comprehensive training for RTC staff

8. Talent acquisition and development

Building a skilled and motivated RTC team is important for success. This involves recruiting, training and retaining treasury professionals, as well as technology specialists. 

Checklist

• Recruit experienced treasury, finance and IT professionals
• Develop structured onboarding programs to streamline the hiring process
• Offer ongoing training in treasury best practices and technology
• Establish performance management by setting clear goals and review processes
• Foster a collaborative and high-performance culture

9. Implementation and transition planning

A detailed implementation plan—including project management, stakeholder communication and phased rollouts—helps ensure a smooth transition to RTC operations.

Checklist

• Develop a project plan with detailed timelines and milestones
• Allocate resources by assigning project leads and support teams
• Maintain regular stakeholder communication to keep everyone engaged and informed
• Implement a phased rollout to manage risk
• Conduct testing of systems and processes before going live
• Develop contingency plans for disruptions, including backup operational procedures and alternative team coverage

Setting up an RTC is no longer reserved for only the largest or most sophisticated organizations. With the right planning, stakeholder engagement and modern technology, establishing an RTC is an achievable goal for companies of all sizes. By taking practical steps and applying best practices, businesses can unlock greater efficiency, control and strategic value from their treasury operations—positioning themselves for success in today’s dynamic global environment.