International Trade Organizations Release Compliance Guidance for Trade Transactions
WASHINGTON – The Wolfsberg Group, The Banking Commission of the International Chamber of Commerce (ICC) and BAFT jointly announce today the publication of The Wolfsberg Group, ICC and BAFT Trade Finance Principles. The guidance document updates the Wolfsberg Group's Trade Finance Principle’s paper last revised in 2011. This broader industry edition now addresses the due diligence required by global and regional financial institutions of all sizes in the financing of international trade.
The document was updated to reflect the growing regulatory expectations, as well as the more stringent application of existing regulations faced by the industry today. The collaborative effort will help standardize the practice of financial crimes compliance for trade transactions.
The publication of this document is the culmination of more than two years of work undertaken by the organizations and their members.
“In keeping with the traditional work of the ICC Banking Commission, this guidance on sound financial crimes risk management for the traditional trade products follows in the steps of the UCP, URC etc. in setting standards by which banks should conduct their trade business and to provide a sound basis for the continuation of the finance of international trade by banks,” said Olivier Paul, head of policy of the ICC.
“When the leading industry associations work together, a stronger and universally acceptable standard of behaviors can be developed and adopted by all of the global trade finance community regardless of size,” said Tod Burwell, BAFT president and CEO. “These principles take into account the difference in development, cultures and size of all banks involved in trade finance and are not specific to any one country.“
"The extensive collaboration between the Wolfsberg Group, the ICC and BAFT to enhance the Wolfsberg Group's 2011 Trade Finance Principles paper will serve a much wider number of financial institutions and, as a result, ensure their applicability more broadly across the industry. This publication is particularly timely in light of the recent focus on international trade flows and correspondent banking. This effort demonstrates the impact that such joint work can have on the industry and will no doubt drive further efforts on other issues in the future,” said Tracy Paradise, executive secretary of the Wolfsberg Group.
BAFT, the leading global financial services association for international transaction banking, helps bridge solutions across financial institutions, service providers and the regulatory community that promote sound financial practices enabling innovation, efficiency, and commercial growth. BAFT engages on a wide range of topics affecting transaction banking, including trade finance, payments, and compliance. The association website is www.baft.org.
About The Wolfsberg Group
The Wolfsberg Group is an association of thirteen global banks which aims to develop frameworks and guidance for the management of FCRs, particularly with respect to Know Your Customer, Anti-Money Laundering and Counter Terrorist Financing policies. The Wolfsberg Group consists of the following financial institutions: Banco Santander, Bank of America, Bank of Tokyo-Mitsubishi UFJ, Ltd, Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JPMorgan Chase, Société Générale, Standard Chartered and UBS.
About The International Chamber of Commerce (ICC)
The International Chamber of Commerce (ICC) is the world’s largest business organization with a network of over 6.5 million members in more than 130 countries. We work to promote international trade, responsible business conduct and a global approach to regulation through a unique mix of advocacy and standard setting activities—together with market-leading dispute resolution services. Our members include many of the world’s largest companies, SMEs, business associations and local chambers of commerce www.iccwbo.org.