BAFT Releases New White Paper on Transaction Banking Sustainable Finance Product and Reporting Matrix

October 16, 2024 by Sarah Myers

WASHINGTON – BAFT, the leading global financial services association for international transaction banking, today released a new white paper, Transaction Banking Sustainable Finance Product and Reporting Matrix. The paper provides guidance on transaction banking sustainable finance products currently being offered to both corporate and financial institution clients.

The reporting matrix is intended to capture, consolidate and display in a simplified, readable format the industry best practice for labeling sustainable finance transaction banking products. Similarly, it highlights the types of reporting necessary for each type of ESG-labeled product.

“The transaction banking industry needs more refined standards tailored to our specific products,” said Andy Price, vice president, international policy, BAFT. “Our hope is that this matrix will serve as a starting point for framework development and ultimately, improve the design of sustainable finance transaction banking products.”

“We believe this resource is the first of its kind, specific to the transaction banking industry, and can be used by transaction banking practitioners and clients looking to further educate themselves on what is currently available in the market, as well as novices looking to learn more about sustainable transaction banking best practices”, said Anna Plewinska-Pijl, director, FI transaction services Europe, ING .

The white paper and reporting matrix were completed with the help of BAFT’s working group on sustainable finance, as well as several industry professionals, including:

Nataša Kovač, ING
Natasa Pudic, ING
Anna Plewinska-Pijl, ING
Dorene Martinez, BNP Paribas
Kaushik Mukherjee, Wells Fargo
Laura Wilson, Investec
Maxwell Chesky, MUFG
Chithra Badri, CICB
Riaan Meyer, Royal Bank of Canada

BAFT intends to update the document as industry developments occur. Click here to read Transaction Banking Sustainable Finance Product and Reporting Matrix, or visit BAFT’s Library of Documents under BAFT Guidance and Industry Practice section at www.BAFT.org.

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.

BAFT Media Contact:
Blair Bernstein
Senior Director, Public Relations
[email protected]
+1 (202) 663-5468

October 10, 2024 by Sarah Myers

The comprehensive report offers practical insights for a seamless transition to the global financial messaging standard

Washington, DC – BAFT, the leading global financial services association for international transaction banking, today announced the release of its second white paper in the ISO 20022 series, “BAFT ISO 20022 Migrations: Best Practices and Guidance.” The report provides critical insights, strategies, and recommendations for financial institutions navigating the migration to the ISO 20022 standard for electronic data interchange between financial institutions.

As the global financial services sector undergoes a major shift toward ISO 20022 adoption, this new white paper builds upon BAFT’s first publication in the series and aims to guide stakeholders through the complexities of the migration process. With the upcoming deadlines and global implementation efforts already underway, the white paper serves as an essential resource for financial institutions, fintechs, and payment service providers at different stages of the transition.

Key highlights from the white paper include:

Roadmap for Migration: A step-by-step guide outlining key phases of ISO 20022 migration, from preparation to execution.
Best Practices: Practical examples and case studies from industry leaders who have successfully migrated to ISO 20022.
Risk Management: Identification of potential risks and mitigation strategies to ensure a seamless transition.
Cross-border and Regional Considerations: Tailored advice for managing regional and jurisdictional differences during migration.
Technology and Infrastructure: Insights on how to update and future-proof existing infrastructure to comply with the new standard.

“We are committed to supporting the global financial industry as it transitions to the ISO 20022 messaging standard,” said Deepa Sinha, vice president of payments and financial crimes, BAFT. “This white paper offers not just guidance, but actionable strategies that institutions of all sizes can leverage to ensure a smooth migration. It also highlights the importance of collaboration between industry players to drive standardization and interoperability in the global payments ecosystem.”

ISO 20022 has emerged as the global standard for financial messaging due to its enriched data format, improved processing efficiency, and ability to support new products and services. The “BAFT ISO 20022 Migrations: Best Practices and Guidance” white paper focuses on how organizations can unlock these benefits while minimizing disruptions during the migration phase.

Click here to read BAFT’s ISO 20022 Migrations: Best Practices & Guidance. The white paper is also available within BAFT’s Library of Documents under the Guidance and Industry Practices section.

About BAFT

BAFT Media Contact:
Blair Bernstein
Senior Director, Public Relations
[email protected]
+1 (202) 663-5468

October 7, 2024 by Sarah Myers

WASHINGTON – BAFT, the leading global financial services association for international transaction banking, has named Craig Weeks as its new senior vice president of trade. Weeks, who joined BAFT this week, will lead the association’s trade-focused policy, practices, and education initiatives, and will support its trade-related councils and committees.

Weeks will work to advance the goals of the trade and supply chain finance industry through defining best practices on trade and supply chain matters. He will also be responsible for formulating policy recommendations and educating industry stakeholders including practitioners, regulators, policymakers and the broader business community.

“I’m excited for Craig to join BAFT,” said Tod Burwell, president and CEO, BAFT. “He has tremendous experience and has held numerous leadership roles within the industry. We are fortunate to have someone with such well-rounded domain knowledge, as well as years of experience, with BAFT.”

Prior to joining BAFT, Weeks held various leadership roles over a 40-year career that included corporations, banks, insurance companies and consulting. He held senior roles in trade at JPMorgan, Citi, and U.S. Bank, and served as the U.S. president of a credit and political risk insurance broker. Immediately prior to joining BAFT, Weeks was the managing partner of a boutique consulting firm. He served two terms on the U.S. Department of Commerce Trade Advisory Council and is a past board president of BAFT. Weeks is a graduate of Dickinson College, where he later served as a trustee, and holds a master’s degree in international management from the Thunderbird School of Global Management.

About BAFT

BAFT Media Contact:
Blair Bernstein
Senior Director, Public Relations
[email protected]
+1 (202) 663-5468

September 12, 2024 by Sarah Myers

On September 6, 2024 BAFT made its’ submission to the Board of Governors of the Federal Reserve System in response to the Expansion of Fedwire Funds Service and National Settlement Service Operating Hours

Click on the link below to access the comment letter.

READ MORE HERE >

September 12, 2024 by Sarah Myers

On September 2, 2024 BAFT made its’ submission to the Financial Stability Board (FSB) in response to the Recommendations for Regulating and Supervising Bank and Non-Bank Payment Service Providers Offering Cross-Border Payment Services Consultation Report.

Click on the link below to access the comment letter.

READ MORE HERE >

July 18, 2024 by Sarah Myers

Washington, DC – BAFT, the leading international transaction banking association, has released a comprehensive white paper titled “Digital Currencies and Financial Crimes Concerns,” offering a thorough examination of the intersection between digital currencies and the challenges posed by financial crimes. This timely publication explores the evolving landscape of digital currencies and their implications for anti-money laundering (AML) and counter-terrorism financing (CTF) efforts.

As digital currencies continue to gain prominence in the global financial ecosystem, stakeholders are increasingly grappling with the potential risks associated with their use in illicit activities. BAFT’s white paper serves as a vital resource for financial institutions, regulatory bodies, policymakers, and other industry participants seeking to navigate this complex terrain.

“Digital currencies present both opportunities and challenges for the financial industry,” said Deepa Sinha, vice president of payments and financial crimes, BAFT. “While they offer innovative solutions for cross-border transactions and financial inclusion, they also pose significant risks in terms of financial crimes. Our white paper aims to provide a comprehensive analysis of these issues and offer practical recommendations for stakeholders to enhance their AML and CTF efforts in the digital currency space.”

The white paper delves into several key areas:

Overview of Digital Currencies: It includes an examination of digital currencies, as well as central bank digital currencies (CBDCs), including their characteristics, mechanisms, and adoption trends. By understanding the diverse nature of digital currencies, stakeholders can better appreciate their implications for financial crimes.

Risks and Challenges: Recognizing the inherent anonymity, borderless nature, and decentralization of many digital currencies, the paper identifies the risks they pose in facilitating money laundering, terrorist financing, fraud, and other illicit activities. It also highlights the challenges associated with effectively detecting and mitigating these risks within the existing regulatory framework.

Regulatory Landscape: The paper explores the efforts of global regulators to address AML and CTF concerns. It examines various regulatory approaches, including licensing requirements, transaction monitoring, customer due diligence (CDD), and information-sharing mechanisms, and evaluates their effectiveness in combating financial crimes.

Technological Solutions: It includes a discussion of the role of advanced analytics, blockchain analytics tools, artificial intelligence (AI), and machine learning algorithms.

Collaboration and Partnerships: BAFT examines the benefits of a collaborative approach to tackling financial crimes associated with digital currencies and the importance of partnership among financial institutions, regulatory bodies, law enforcement agencies and technology providers.

Future Outlook: The paper offers insights into emerging trends, regulatory developments, and technological advancements for digital currencies and financial crimes.

Click here to read BAFT’s Digital Currencies and Financial Crimes Concerns. The white paper is also available within BAFT’s Library of Documents under the Guidance and Industry Practices section.

About BAFT

BAFT Media Contact:
Blair Bernstein
Senior Director, Public Relations
[email protected]
+1 (202) 663-5468

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