Australia and the US are joining forces to support Pacific nations grappling with a sharp decline in correspondent banks.

Australian Treasurer Jim Chalmers announced a $6.3 million initiative to counter the loss of the essential banking links.

The move, discussed at the Pacific Banking Forum in Brisbane, aims to bolster anti-money laundering measures and combat terrorism financing.

The Pacific faces a disproportionately rapid decline in banking relationships compared to the global average, posing challenges for local economies reliant on remittances and international trade.