Response to FinCEN ANPR on Anti-Money Laundering (AML) Program Effectiveness

November 18, 2020 by Jessica Moore

On November 16, BAFT, along with BPI and others, submitted a letter to FinCEN supporting regulatory action that would permit entities to enhance the effectiveness of their AML programs.

BAFT along with seven other trade associations submitted a response to an advance notice of proposed rulemaking issued by the Financial Crimes Enforcement Network (“FinCEN”) related to AML program effectiveness.

The associations communicated their view that regulatory action is necessary to enable the allocation of resources to enhance the effectiveness and efficiency of AML programs, while remaining compliant with the legal requirements of the Bank Secrecy Act (“BSA”). They offered several high-level recommendations to FinCEN as it moves forward with the rulemaking process.

To read the joint letter and learn more about the associations’ recommendations, visit our Library of Documents under the Comment Letters section or click here.

November 13, 2020 by Jessica Moore

BAFT and CGI recently conducted a survey of more than 200 BAFT members in an effort to better understand the current state of technological advancements in trade, and how the pandemic has accelerated their importance and need.

WASHINGTON – More than 70 percent of bank respondents reported a culture of increased innovation in trade finance during the last year, according to a new survey conducted by BAFT, the leading global financial services association for international transaction banking, and CGI, a multinational, independent IT and business consulting services firm. In fact, nearly 85 percent of survey participants reported increased digitization efforts at their financial institution in the wake of the COVID-19 pandemic.

BAFT and CGI conducted its survey of more than 200 BAFT members in the summer of 2020 in an effort to better understand the current state of technological advancements in trade, and how the pandemic has accelerated their importance and need.

The survey found that banks have been driving new digitization efforts, forming consortia with financial and corporate partners, searching for compliance solutions, and re-examining existing processes to create efficient operations.

“Over the last 10 years of my career, we have been discussing automating trade finance processes,” said Stacey Facter, senior vice president, trade products, BAFT. “COVID-19 has underscored the need to move away from paper and seemingly expedited the transition. BAFT works to identify barriers to innovation and address them head on to continue driving the global trade finance industry to embrace digitalization.”

Digitization initiatives are underpinned by technologies such as blockchain/DLT platforms, intelligent process automation, artificial intelligence, machine learning, natural language processing, and robotic process automation.

“The BAFT and CGI survey reveals that while banks continue to face legal, regulatory, and compliance challenges, the industry is making advances with newer technologies that support integrated platforms and provide seamless transactional workflows,” said Patrick DeVilbiss, director of consulting, trade and supply chain solutions, CGI.

The full survey and results will be presented at BAFT’s 2020 Virtual International Convention on Thursday, November 19 at 10:35 ET / 15:35 GMT during the ‘Trade Technology: Today’s Focuses, Tomorrow’s Promises’ session. This session will discuss the results of the survey and provide insight on the current state of technological advancement in trade featuring Normand D’Arcy, senior manager, international services, National Bank of Canada; Patrick DeVilbiss, director of consulting, trade and supply chain solutions, CGI; Stacey Facter, senior vice president, trade products, BAFT; and Marc Smith, CEO & founder, Conpend.

To view the survey’s results including respondents top technology investments over the next five years, top challenges in meeting shifting business needs, culture of innovation, fintech collaboration, and more, visit our Library of Documents under the Surveys section or click here.

About BAFT
BAFT is the leading international financial services association whose membership includes large global and regional banks, service providers, and fintech companies headquartered around the world. BAFT provides advocacy, thought leadership, education, and a global forum for its members in transaction banking, including international trade finance and payments. For nearly a century, BAFT has expanded markets, shaped policy, developed business solutions, and preserved the safety and soundness of the global financial system.

About CGI
Founded in 1976, CGI is among the largest independent IT and business consulting services firms in the world. With 76,000 consultants and other professionals across the globe, CGI delivers an end-to-end portfolio of capabilities, from strategic IT and business consulting to systems integration, managed IT and business process services and intellectual property solutions. CGI works with clients through a local relationship model complemented by a global delivery network that helps clients digitally transform their organizations and accelerate results. CGI Fiscal 2020 reported revenue is C$12.16 billion and CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB). Learn more at cgi.com.

BAFT Media Contact:
Blair Bernstein
[email protected]
+ 1 (202) 663-5468

November 12, 2020 by Jessica Moore

Payables Finance Technique – Market Practices in Supply Chain Finance is the second in a series of guidance documents set to further encourage industry-wide adoption of uniform terms and techniques.

The Global Supply Chain Finance Forum (GSCFF) – an initiative comprising the International Chamber of Commerce (ICC) Finance for Development Banking Commission, BAFT (The Bankers Association for Finance and Trade), the Euro Banking Association (EBA), FCI, and the International Trade and Forfaiting Association (ITFA) – has released a new guidance document on payables finance, to aid financial institutions, accounting firms, rating agencies and regulators in gaining clarity and consistency on the various terms and techniques.

While uptake and feedback on the 2016 Standard Definitions for Techniques of Supply Chain Finance has been positive, much work is still required to further align terminology across the complex ecosystem of stakeholders involved in international supply chains.

As part of this drive for clarity, the second Market Practices in Supply Chain Finance publication focuses on payables finance – a technique and form of receivables purchase, flexibly applied, in which sellers of goods and services sell individual or multiple receivables (represented by outstanding invoices) to a finance provider at a discount. In turn, the guidance document takes a wider look at this important technique and provides a comprehensive overview on how payables finance can be used in practice.

“When all parties use similar techniques and terminology, it makes for a streamlined and efficient process,” said Christian Hausherr, European Product Head of Supply Chain Finance at Deutsche Bank and Chair of the GSCFF. “Our hope is that this report will lead to an industry-wide, uniform adoption of the payables finance technique.”

The publication represents a go-to resource that finance providers can refer to for guidance on common market practices in risk management, documentation and operational handling for payables finance transactions.

To read the full guidance document, visit our Library of Documents under the Industry Definitions and Guidelines section or click here.

About the Global Supply Chain Finance Forum:
The Global Supply Chain Finance Forum was established in January 2014, as an initiative of these industry associations to address what has been recognized as a need to develop, publish and champion a set of commonly agreed standard market definitions for Supply Chain Finance and for SCF-related techniques.

November 2, 2020 by Jessica Moore

On November 2 , BAFT announced the formation of its new Global Payments Industry Council (GPIC).

WASHINGTON — BAFT, the leading international transaction banking association, announced today the formation of its Global Payments Industry Council (GPIC). The GPIC’s primary purpose is to set BAFT’s strategic agenda with respect to global payments and to ensure proper alignment of BAFT’s payments committees and working groups.

The council will be led by Chair David Kretz, head of GTS global strategy and payments for Bank of America and Vice-Chair Jean-François Mazure, head of cash clearing services for Societe Generale.

“The GPIC serves as the cornerstone of BAFT’s new payments strategy, which the Board approved earlier this year,” said Samantha Pelosi, senior vice president for payments and innovation, BAFT. “We look forward to the council’s direction and guidance in this increasingly important area of transaction banking.”

The GPIC’s top three priorities for the next two years include interfacing with key regulators around the globe about the information traveling with funds for transparent payments, ensuring that the same standards are applied to all entities wishing to participate in real-time payments systems, and developing best practices for those real-time payments participants, such as origination, on-boarding an entity to platform, expediting the resolution of exceptions in processing, and effectively leveraging the new technology.

The GPIC is made up of 20 bankers comprised of executives leading the cash management, payments and liquidity business lines of BAFT member organizations. The GPIC’s geographic representation includes Africa, Asia-Pacific, Europe, MENA, and North America.

About the Global Payments Industry Council (GPIC)
The GPIC consists of global heads of payments and cash management from member banks including ANZ, Bank of America, Barclays, BNP Paribas, BNY Mellon, Citigroup, Deutsche Bank, First Abu Dhabi Bank, HSBC, J.P. Morgan, MUFG, Nordea, Santander, Societe Generale, Standard Bank, Standard Chartered, TD Bank, UBS, and Wells Fargo.

BAFT Media Contact:
Blair Bernstein
[email protected]
+ 1 (202) 663-5468

October 20, 2020 by Jessica Moore

On October 23, BAFT’s Board Chair, Mark Garfield, published his monthly communication to the wider BAFT membership.

In my history classes in school much of the study of countries and societies centered around the trade of commodities; nutmeg, silk, coffee. In my finance classes, the most popular commodity mentioned in studying market prices was pork bellies. I enjoyed learning about transportation developments from the creation of the Erie, Suez, and Panama canals to move commodities more efficiently.

Maybe that is why I chose to pursue international banking which supports, finances and transacts the trade of commodities from agricultural products such as grains, nuts, and meat products to hard commodities like essential minerals, oil and gas, and the daily trading of currencies. It has kept every day interesting and fast-paced. Plus, from working with a trading company a few years back I learned that from pork bellies we get bacon!

This summer brought with it unusual circumstances in the commodities and logistics markets. The spot market in oil was in the negative. Cargo vessels were unable to unload commodities as ports were closed. There were storage shortages and disrupted supply chains.

This disruption as well as the rapid pace of technological change raises many questions. What are the immediate issues commodity industries are facing? Which commodities will be in the greatest demand in the future? How will they be delivered most efficiently? Where does sustainability fit in? Will there be virtual commodities in virtual currencies? How will our banking industry change to continue to support the exchange of commodities globally? Where are our clients looking to us to lead?

On Tuesday, October 27, we will have the opportunity to listen to three commodity companies in the second series of The BAFT Crystal Ball Series. It is an excellent chance to hear industry leaders discuss the future of the commodity markets in our ever-changing world. Thinking back to my high school science classes where I used a slide ruler to solve equations in my first year but by my third year, thankfully, I had an electronic calculator…today is moving even faster.

While this session is hosted in a European and Asian friendly time zone, our members based in North America, like me, can register to receive access to the on-demand recording.

See you soon virtually!

Mark Garfield
BAFT Chair
Head of Global Financial Institutions
Zions Bancorporation

October 2, 2020 by Jessica Moore

BAFT has announced Jose Luis Calderon, global head of global transaction banking at Santander, as the new chair of its Transaction Banking Global Leaders (TBGL) group.

WASHINGTON — Jose Luis Calderon, global head of global transaction banking at Santander, succeeds Diane Reyes, group general manager and global head of global liquidity and cash management at HSBC, who led the group for the past two years.

The TBGL brings together the leaders of the industry’s largest transaction banks to discuss solutions to common points of interest where cross-industry collaboration is required. Current topics of discussion include regulatory compliance, financial crime mitigation, payments and trade innovation, IBOR transition, human capital development and increasing the profile of the transaction banking industry.

“I am thrilled with the opportunity to chair BAFT’s Transaction Banking ‎Global Leaders Group at such challenging times,” said Calderon. “Our industry has proven essential to maintaining companies’ access to banking services, controlling their liquidity and funding their working capital needs, and ultimately, being close to our clients when they most need us.”

Calderon joined Santander in 1997 and has held various positions in Santander Corporate & Investment Banking (Santander CIB) division. Since 2004, Calderon has occupied different management roles within Santander CIB, acting as product manager of GTB Europe, head of GTB Iberia and head of GTB Europe until 2014, when he was appointed global head of global transaction banking managing a team of more than 500 professionals. He holds a bachelor’s degree in economics and business administration from Universidad de Cantabria, and is a member of various international bodies such as the SWIFT Board and IBOS Association.

“Jose has been an active and valuable contributor to the TBGL since he joined five years ago, and has been an important leader in the transaction banking industry more broadly,” said Tod Burwell, BAFT president and CEO. “The industry is facing unprecedented challenges at this time, and collaboration is paramount to moving forward. We look forward to the future under Jose’s leadership.”

The group includes 18 institutions from across multiple continents, bringing geographic diversity and balance to the industry dialogue. Participants collectively represent a significant share of the transaction banking services offered by financial institutions.

About BAFT
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.

BAFT Media Contact:
Blair Bernstein
[email protected]
+ 1 (202) 663-5468

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