This site uses cookies to improve your browsing experience, gather site analytics and activity, track shopping cart contents, and deliver relevant marketing information.
View our privacy policy and manage your settings here. By using our site you agree to these terms.

BAFT News and Press Releases

 

BAFT Releases FATF Guidance for Wire Transfers

by Patrick Devilbiss | Sep 20, 2016
Members interested in viewing the FATF Payments Best Practices can go here or they can go to the regulatory implementation chart

WASHINGTON — BAFT, an international financial services association, released its Best Practices and Guidance for Formatting Payments and Handling Inquiries Related to the Financial Action Task Force (FATF) Recommendation 16. The guidance, developed by a working group of the BAFT Payments and Compensation Committee, is designed to assist wire transfer formatting for international banks.

The working group was made up of financial institutions and solution providers and was formed to address formatting and inquiry issues resulting from FATF Recommendation 16. In an effort to prevent terrorists and other criminals from moving funds, FATF Recommendation 16 requires the inclusion of certain beneficiary information, as well as originator information, when sending wire transfers.  

“Combatting financial crime in an efficient and effective way continues to be a challenge for financial institutions across the globe,” said Samantha Pelosi, BAFT senior vice president of payments and innovation. “We hope this guidance helps payments practitioners as they perform their day-to-day wire transfers, inquiries, and investigations.”

The guidance document outlines best practices for formatting cross-border wires and lays out standards for inquiry and exception handling across various jurisdictions. As a supplement to the guidance, BAFT, with the help of its Future Leaders Program, developed a regulatory chart which maps the current known regulations related to wire transfers for 50 jurisdictions.

“We are excited that one of our 2016 Future Leaders Program project teams was able to contribute to this important industry resource by helping expand the scope of jurisdictions covered,” said Tod Burwell, BAFT president and CEO.

The working group consulted several resources to develop its recommendations, including an industry document produced by one of BAFT’s legacy organizations, IFSA, as well as SWIFT’s Payments Market Practice Group. Extensive outreach was also done at a global level through BAFT’s North America, Middle East and North Africa, Asia, and Europe Regional Councils.

The FATF Guidance document is available for download at http://www.baft.org.

Members access to the Best Practices document
Members access to the regulatory chart    

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.