Financial Crime

Afreximbank and BAFT Deliver Correspondent Banking Training to African Respondent Banks

170+ participants from 30 banks in 20 African countries offered an overview of critical aspects to consider when establishing new correspondent banking relationships.

CAIRO/WASHINGTON – The African Export-Import Bank (Afreximbank) and BAFT (Bankers Association for Finance and Trade) organized a successful series of training workshops for thirty African respondent banks between May and October 2021 to enhance their ability to obtain and maintain correspondent banking relationships.

The three-day training session attended by over one 170 participants from twenty African countries offered an overview of critical aspects to consider when establishing new correspondent banking relationships.

In the current context where access to correspondent banking services is becoming increasingly costly due to heightened regulatory expectations, particularly concerning Anti-Money Laundering and Counter-Terrorism Financing, the attendees participated in an in-depth discussion on respondent best practices for due diligence, maintaining relationships, and how to engage money service businesses and fintech companies.

Denys Denya, Afreximbank’s Executive Vice President in charge of Finance, Administration and Banking Services said, “As part of Afreximbank’s Correspondent Banking and Trade Services Strategy, we have been supporting banks in our member states to have access to the international banking market by providing them with trade finance lines and advisory Services. Improving the capacity of African banks to enable them to access correspondent banking services is also a key part of our mandate, and capacity building is a major activity in this regard.”

“We are delighted that the BAFT Respondent’s Playbook has been introduced to so many banks in the region. Our hope is that they better understand the expectations of correspondent banks and regulators, and are able to apply key takeaways to assist in building and maintaining correspondent banking relationships.” said Tod Burwell, President & CEO, BAFT.

About Afreximbank

African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade. The Bank deploys innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa. At the end of 2020, Afreximbank’s total assets and guarantees stood at US$21.5 billion, and its shareholder funds amounted to US$3.4 billion. The Bank disbursed more than US$42 billion between 2016 and 2020. Afreximbank has ratings assigned by GCR (international scale) (A-), Moody’s (Baa1) and Fitch (BBB-). It is headquartered in Cairo, Egypt.

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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.

To learn how your organization can access BAFT’s Respondent’s Playbook Training or for additional training or educational topics, please email [email protected].

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BAFT and Afreximbank Deliver Virtual Training Workshops on Correspondent Banking in Africa

BAFT and the African Export-Import Bank (Afreximbank) announce the launch of a series of training workshops for African respondent banks to enhance their ability to obtain and maintain correspondent banking relationships.

CAIRO/WASHINGTON – African Export-Import Bank (Afreximbank) and BAFT today announced the launch of a series of training workshops for African respondent banks to enhance their ability to obtain and maintain correspondent banking relationships.

The first round of workshops, to be held virtually July 27-29, 2021, is primarily geared toward compliance and risk management staff, as well as transaction banking business line and credit officers from private sector and central banks across Africa.

In the current context where access to correspondent banking services is becoming increasingly costly due to heightened regulatory expectations, particularly in relation to Anti-Money Laundering and Counter Terrorism Financing, the three-day training sessions will provide an overview of important elements to be considered by respondent banks when establishing new correspondent banking relationships. Attendees will participate in in-depth discussions on respondent best practices for due diligence, maintaining relationships, and working with money service businesses and fintech companies.

Afreximbank has identified BAFT as a strategic partner in this initiative, utilizing the BAFT Respondent’s Playbook, the industry leading approach to capacity building.

“We are thrilled to launch such an important capacity building initiative in cooperation with Afreximbank in markets deeply affected by correspondent banking de-risking,” said Tod Burwell, BAFT President & CEO. “We hope that participants gain new knowledge and insight on ways to strengthen relationships with correspondent banks.”

“As part of Afreximbank’s Correspondent Banking and Trade Services Strategy, we have been supporting banks in our member states to have access to international banking market by providing them with trade finance lines and Advisory Services. Improving the capacity of African banks to enable them to access correspondent banking services is also key part of our mandate and capacity building is a major activity in this regard,” said Denys Denya, Afreximbank’s Executive Vice President in charge of Finance, Administration and Banking Services.

About Afreximbank

For more information, visit: www.afreximbank.com.

Follow Afreximbank: Twitter | Facebook | LinkedIn | Instagram

About BAFT

To learn how your organization can access BAFT’s Respondent’s Playbook Training or for additional training or educational topics, please email [email protected].

Follow Us: Twitter| LinkedIn | YouTube

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

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.

BAFT Response to EC Public Consultation on AML Action Plan

On August 27, BAFT responded to the European Commission’s Action Plan for a comprehensive Union policy on preventing money laundering and terrorism financing.

BAFT supports greater coordination and a more effective framework to prevent money laundering and terrorist financing across Europe. In drafting the response to the consultation, BAFT surveyed members in Europe to assess their views on the European Commission’s AML Action Plan which includes six pillars:

Effective implementation of existing rules
A single EU rulebook
EU-level supervision
A support and cooperation mechanism for financial intelligence units
Better use of information to enforce criminal law
A stronger EU in the world

To view the comment letter, visit our Library of Documents under the Comment Letters section or download the pdf here.

Letter Supporting Anti-Money Laundering (AML) Reform Provisions in National Defense Authorization Act

On July 20, BAFT, along with the ABA and others, urged House Armed Services Committee leaders to include key AML provisions in the 2021 NDAA.

BAFT along with nine other trade associations had urged House Armed Services Committee leaders to include key anti-money laundering provisions in National Defense Authorization Act (NDAA). The provisions would direct the Financial Crimes Enforcement Network to establish and maintain a registry of beneficial ownership information and also modernize Treasury authorities and certain anti-money laundering requirements.

The groups noted that these provisions will “assist in preventing money laundering, human trafficking, drug smuggling, terrorism financing, fraud and other illicit activity.” These provisions passed the House with a bipartisan majority in a standalone bill last year.

To view the joint letter, visit our Library of Documents under the Comment Letters section.

BAFT, Trade Groups Call for National Beneficial Ownership Registry and Reform of AML Framework

On March 13, BAFT joined eight other financial services trade associations in submitting a letter to the House Financial Services Committee leaders highlighting the need for a national beneficial ownership registry.

While banks are required to collect the beneficial ownership information of their customers, the associations noted that the lack of a single, centralized federal registry for verification of that information “represents a significant gap in the U.S. regulatory system that allows criminals, money launderers, kleptocrats and terrorist financiers to obscure their identities from law enforcement.”

The letter urged lawmakers to pursue reforms to the current anti-money laundering framework that would result in greater clarity and simplicity for banks. Specifically, the associations called for reforms that would better align the examination and compliance framework with national AML/CFT priorities; facilitate information sharing between financial institutions and law enforcement; update and streamline reporting requirements; and encourage the use of technology to support AML efforts.

The letter may be found under the Comment Letters in the Documents Library.

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