Regulatory

Cracking the Correspondent Banking Code

BAFT has updated its playbook to help respondents establish and maintain correspondent banking relationships — not an easy feat under current stringent financial crime compliance regimes.

Via The Banker by Joy Macknight

According to a 2018 Financial Stability Board report, the number of correspondent accounts declined by 15.5% from 2011 to 2017, which is of growing concern worldwide.

According to the Bank for International Settlements, de-risking could push users to less regulated or unregulated channels such as cryptocurrency and cash, potentially adversely affecting global financial integrity.

While regulators have been mindful of the adverse impact of bank de-risking on correspondent banking worldwide, there are no obvious and easy solutions to reversing the trend, according to John Everington’s recent article. Yet something needs to be done.

To address this problem, BAFT (Bankers Association for Finance and Trade) has released an updated version of its 2019 ‘Respondent’s Playbook for Obtaining and Maintaining a Correspondent Banking Relationship’.

As the largest global correspondent banks generally set the standard expectations for all respondent banks, BAFT convened a core working group of 10 global correspondent banks and one industry body that collectively represents 13 of the largest global correspondent banks. The association canvassed their advice for when respondents are looking to establish a new relationship or maintain an existing relationship, as well as options for respondents unable to obtain or maintain a relationship.

For example, when establishing a new relationship, BAFT research found that approximately two-thirds of surveyed correspondent banks consider three major commercial factors when evaluating a prospective partnership: potential profitability; expected costs (including financial crime compliance costs) of service delivery; and the creditworthiness of the respondent.

One suggested best practice for respondents is to ensure that there is sufficient opportunity for the correspondent with respect to the book of business being offered, including a good mix of transaction flows and associated risks. As such, a respondent should concentrate its business on fewer correspondents.

Maintaining a relationship may prove difficult, as correspondents are expected to conduct a periodic review and refresh of customer due diligence information. At any point, a correspondent could change its business strategy and exit a jurisdiction, a respondent could fail to meet the correspondent’s commercial expectations, or the respondent’s risk profile could adversely change. In such cases, regular and open communication is key, according to the playbook, including proactively identifying the increasing risk and notifying the correspondent.

But what if circumstances make it challenging for a respondent bank to obtain or maintain a correspondent relationship? This could be because the respondent doesn’t generate enough revenue for the correspondent, or the jurisdiction or respondent present an exceptionally high risk for financial crime.

In the former instance, one suggestion is for the respondent to convince the jurisdiction’s central bank or an organisation that covers several jurisdictions within a region to establish an institution to serve small banks in the jurisdiction or region. For respondent banks located in jurisdictions that do not have sufficient regimes for combatting financial crime, the playbook’s recommendation is to join a national or global banking association to promote awareness and adoption of best practices, as well as encourage the government to engage in capacity building.

The Respondent’s Playbook 2.0 incorporates current regulatory changes in the marketplace around international anti-money laundering and combating the financing of terrorism standards. The updated version also features a new section on the migration to the ISO 20022 messaging standard.

BAFT forewarns that a respondent’s use of the playbook does not guarantee its ability to secure a correspondent relationship. However, its aim is to provide constructive guidance for respondents to reduce their perceived financial crime compliance risk.

Navigating the Labyrinth: BAFT’s Updated Playbook on Correspondent Banking Relationships

Correspondent banking relationships (CBRs) are the linchpin of international trade and finance, enabling cross-border transactions and providing a gateway to foreign financial markets.

Via Trade Finance Global by Deepesh Patel

Correspondent banking relationships (CBRs) are the linchpin of international trade and finance, enabling cross-border transactions and providing a gateway to foreign financial markets. However, these relationships have come under scrutiny in recent years, with a decline in CBRs observed in many parts of the world.

This decline has raised concerns about financial exclusion and the rising costs of trade finance, issues that have only gained urgency in the face of evolving regulatory landscapes and technological advancements.

The playbook serves as a roadmap for respondent banks navigating international anti-money laundering and combating the financing of terrorism (AML/CFT) standards.

BAFT (Bankers Association for Finance and Trade) has released an updated version of its Respondent’s Playbook for Obtaining and Maintaining a Correspondent Banking Relationship in this complex environment.

This update, a successor to the 2019 guidance document, incorporates current regulatory changes and introduces a new section on ISO 20022 migration.

Sweet Symbiosis: Correspondent and Respondent Banking

In CBRs, one correspondent bank holds deposits and offers payments and other services to another bank, referred to as the respondent. Typically, respondent banks are smaller entities, often located in emerging markets, that rely on their correspondents for international transactions.

This symbiotic relationship is essential for the functioning of global trade, yet it is fraught with complexities, particularly in compliance and risk management.

De-risking – A Double-edged Sword?

While risk management is the cornerstone of any financial institution, the strategy of de-risking or terminating CBRs to avoid risk has had unintended consequences.

Financial exclusion, particularly in emerging markets, and the resultant increase in trade finance costs have raised ethical and economic concerns. De-risking has effectively hampered global trade and development, creating a ripple effect that extends beyond the banking sector. Here, industry standards, such as those set by the Wolfsberg Group, become particularly relevant.

This association of thirteen global banks has been instrumental in developing frameworks for managing financial crime risks, offering a layer of uniformity in an otherwise fragmented landscape.

Factors Contributing to the Decline in CBRs

Several factors have contributed to the decline in CBRs, including:

Increased Regulatory Scrutiny: Correspondent banks are subject to strict regulatory requirements, particularly with AML/CFT compliance. Compliance costs have risen significantly in recent years, making it more difficult for some banks to maintain correspondent banking relationships.
De-risking: Some correspondent banks have adopted a de-risking strategy, which involves terminating CBRs with banks that are perceived to be high-risk. This has been particularly common with banks in emerging markets.
Technological Advancements: Fintech companies are developing new solutions for cross-border payments, which could reduce the need for correspondent banking relationships.

Fintech companies are playing an increasing role in the cross-border payments landscape. Some fintech companies are developing alternative solutions for respondent banks, such as providing access to global payment networks or offering digital escrow services.

While fintech companies could help address some of the challenges faced by respondent banks, it is essential to note that they are also subject to regulatory scrutiny. Additionally, fintech companies may need help to provide the full range of services that correspondent banks offer, such as trade finance and cash management.

Updating the 2019 Playbook

BAFT’s original playbook, released in 2019, was a timely intervention. It provided respondent banks with actionable insights and guidelines on maintaining correspondent banking relationships, particularly in the face of stringent AML/CFT regulations.

The document was a comprehensive guide covering everything from establishing new relationships to the intricacies of compliance.

Regulatory landscapes are not static; they evolve in response to emerging risks and economic realities. Four years later, the updated playbook, the Respondent’s Playbook 2.0, reflects these changes.

It incorporates current regulatory shifts and introduces a new section on ISO 20022 migration, an international standard for electronic data interchange between financial institutions. This update is not merely an addendum but a recalibration designed to equip respondent banks for the challenges ahead.

ISO 20022 Migration

One of the critical updates in the 2023 playbook is the inclusion of a section on ISO 20022, a standard set to revolutionize the way financial messages are transmitted across the globe. ISO 20022 is a new international standard for electronic data interchange between financial institutions. It is set to revolutionize how financial messages are transmitted globally.

The adoption of ISO 20022 is not just a technical upgrade but a strategic move that will enhance the efficiency and transparency of international transactions.

Respondent banks should start planning for ISO 20022 migration now, as the standard is expected to be widely adopted in the coming years.

The benefits of ISO 20022 for respondent banks include:

Enhanced efficiency and transparency: ISO 20022 uses a common data language to streamline cross-border payments and reduce the risk of errors.
Reduced costs: ISO 20022 will help reduce cross-border payment costs by eliminating the need for multiple data conversions.
Improved compliance: ISO 20022 will help respondent banks comply with international AML/CFT regulations.

The challenges of ISO 20022 migration for respondent banks include:

Technical complexity: ISO 20022 is a complex standard, and migrating to ISO 20022 will require significant investment in technology and resources.
Time and cost: Migrating to ISO 20022 will be time-consuming and costly.
Coordination with correspondent banks: Respondent banks must work closely with their correspondent banks to ensure they are both ready to migrate to ISO 20022.

The playbook also details compliance practices, providing both correspondent and respondent banks with a toolkit to navigate the complexities of international finance and regulatory compliance.

The future of correspondent banking relationships is still being determined. However, respondent banks must adapt to the changing landscape to remain competitive.

The BAFT Respondent’s Playbook is a valuable resource for respondent banks, guiding how to obtain and maintain correspondent banking relationships in compliance with international AML/CFT standards.

It addresses the ‘what’ and the ‘why’, offering insights into the rationale behind best practices and regulatory requirements. In doing so, it provides banks with the tools to adapt and thrive in an environment of constant change. The playbook serves as a timely reminder that in the fast-evolving world of international finance, staying ahead is not just about keeping pace with change but anticipating it.

The BAFT Respondent’s Playbook 2.0 can be read here.

Roundtable: What Keeps the BAFT Global Trade Industry Council Up at Night?

SIBOS 2023, held this year in Toronto, allowed BAFT’s Global Trade Industry Council to come together with Trade Finance Global to discuss industry trends and issues.

Via Trade Finance Global

At SIBOS 2023, Trade Finance Global (TFG) spoke with trade industry leaders: Avanee Gokhale, Global Lead for Trade Strategy at SWIFT; Anirudha Panse, Managing Director & Head of Trade at First Abu Dhabi Bank; Marie-Laure Gastellu, Global Head of Trade at Societe Generale; Gwynne Master, Global Head of Working Capital Solutions at Lloyds Bank; Scott Stevenson, Senior Vice President of Trade at BAFT; and Tod Burwell, President & CEO at BAFT.

This roundtable discussion with the BAFT Global Trade Industry Council (GTIC) revolved around the macro trends in global trade and working capital, the results from the Asian Development Bank’s (ADB) 2023 Trade Finance Gaps, Growth and Jobs survey, correspondent banking and de-risking challenges, and the prospect of digitalization.

Macro Trends in Global Trade and Working Capital

In the ever-changing landscape of global trade and working capital, several macro trends and shifting priorities, which reflect the evolving challenges and opportunities facing trade finance professionals, are worth noting.

Firstly, there is a growing emphasis on understanding the intricacies of cross-border trade, as it directly impacts payments.

Approximately 50% of cross-border payments are driven by trade, making it imperative to comprehend associated risks, business flows, and the diverse actors involved.

This complexity is further compounded by the fragmented nature of the trade space, with multiple platforms, rulebooks, and processes spanning physical and financial supply chains across various jurisdictions and geographies.

While technology plays a significant role in streamlining these processes, it is not enough on its own.

Gokhale said, “A key strategy from a Swift perspective is to support a future-ready ecosystem that is anchored in standards and promotes interoperability and digitisation.”

In parallel, the landscape of working capital is experiencing notable shifts. Sustainability has become a core focus, with commitments to allocate substantial funds over the next decade.

In regions like the Middle East, diversifying away from oil-based to knowledge-based economies and incorporating sustainability and inclusive financing are top priorities, reflecting a general shift in the market’s demands.

Panse said, “The market has become far more savvy now. A few years ago, most of the Middle Eastern corporates were very happy doing their trade financing on the back of a letter of credit, but that is changing more and more to open account.”

In regulatory matters, electronic trade documents and various financial crime regulations influence trade and working capital solutions.

Collaboration, innovation, and adherence to standards are essential in addressing these regulatory changes effectively.

The emergence of environmental, social, and governance (ESG) regulations, in particular, underscores the need for clear standards, data capture, and reporting.

Gastellu said, “As of today, it’s not clear what we have to report on as banks. We are all doing our own reporting, but we are really lacking industry standards ensuring that we all report according to the same criteria and we definitively need some clarification on that to drive transparency.”

Master added, “We do not want to see everybody inventing their own wheels. Just like AML/KYC, ESG carbon reporting presents a great opportunity to collaborate and establish clear regulatory guardrails.”

Industry players must collaborate with regulators, auditors, rating agencies, and investors to ensure meaningful progress in ESG compliance and measurement.

Addressing the $2.5 Trillion Trade Finance Gap

The Asian Development Bank’s 2023 Trade Finance Gap, Growth, and Jobs Survey, released last month, shows that the trade finance gap has widened to $2.5 trillion, up from its previous $1.7 trillion.

However, the widening nature of the gap does not change the nature of the roadmap to try and solve it.

Burwell said, “We looked at this question with the World Trade Board, and what we came up with was there were fundamentally five key building blocks to addressing it.

One was digital infrastructure, one was data infrastructure, one was legal infrastructure, one was new funding sources, and then one was technical capacity.”

Digital infrastructure involves creating digital platforms and solutions that streamline trade processes, making it easier for businesses, especially small and medium-sized enterprises (SMEs), to participate in international trade.

Panse said, “Banks’ mandate from their shareholders is to grow assets and increase revenues. Banks actually like the SME business given the returns on capital as well as the absolute NIMs this segment provides. Many banks like FAB are actively lending to SMEs and thus are actually helping address this gap. However, the problem comes in when you don’t have enough information about the SMEs”

This is where data infrastructure plays a vital role. Through enhanced data standards and interoperability, firms exchange information and documents seamlessly, building a data footprint that can help them get financing down the road.

Standardization efforts, led by organizations like the International Chamber of Commerce (ICC) and SSIFT, aim to improve data quality and accessibility for all participants, including SMEs.

Burwell added, “Large global banks tend not to be the ones best placed to go after some of these markets that are most starved. The large global banks oftentimes depend on the smaller local banks to do that level of origination. But there’s a gap in many of these smaller local banks with the technical capabilities and the data capabilities and the rest of that.”

Building technical capacity is a long-term strategy focusing on industry education and skill development.

It includes training stakeholders who may not fully understand the complexities of trade finance, ensuring they can leverage digitization and data-driven solutions effectively.

This can be across all areas of the industry, from banks through to the smallest prospective trader.

Master said, “We started the journey, focusing on helping the little company, the SME, with their biggest pain points. Our focus was on education and process simplification. We began with the Lloyds Bank International Trade Portal, open to all companies in the UK, not just our own clients, and at no cost because we want businesses to learn and to experience a more friction-free trade journey. We then introduced digital solutions to make trade simpler, faster, safer, and more sustainable. At the end of the day, it’s all about helping Britain trade to help Britain prosper.”

Correspondent Banking and De-risking Challenges

Trade finance confronts significant challenges, primarily linked to the declining number of correspondent banking relationships and the practice of de-risking.

Stevenson said, “To a great extent, this is being driven by reputational risk. At one point in time, the concern was really more of a regulatory risk or a credit risk. But that’s really been taken off the table with the concern about sanctions, with the concern about counterparties, the issue of reputational risk.”

Unlike financial or credit risk, reputational damage can be enduring and challenging to recover from, making banks increasingly cautious about their trade activities.

The fear of sanctions and the complexity of international trade transactions contribute to derisking.

Banks are reluctant to engage in transactions that might indirectly involve sanctioned entities or nations, and the intricate nature of global trade makes it challenging to ensure full compliance with sanctions rules.

Enhanced transparency is seen as a potential solution to address these challenges. However, sharing sensitive transaction data among banks raises privacy and ownership concerns since the data belongs to the participating banks.

Gokhale said, “While a lot of data might be on Swift, we don’t own that data, it belongs to the banks, and we are not able to access or share it freely. This makes it a much bigger problem than Swift can tackle alone.”

Finding ways to share relevant data while upholding privacy and confidentiality is an ongoing dilemma. Some regions have seen collaborative networks among banks emerge.

These networks aim to share information about trade transactions anonymously to build confidence and reduce perceived risks.

Such initiatives can enhance access to trade finance, particularly for SMEs, and promote transparency, but are not a perfect solution.

Panse said, when asked about his views on Trade Risk Distribution, “Many Banks tend to hold assets than distributing them actively. They would only look to distribute the assets if there is mandate from their internal credit teams, or they are hitting their capacity or capital constraints internally. In other cases, the participant banks are not able to buy the offered assets as they may not have relationship with the buyer or are constrained by internal return hurdles.”

Digitalization Won’t Succeed Without Standards

Trade digitalization holds immense promise for addressing the trade finance gap, but it also requires a multi-faceted approach. Gastellu said, “While technology is key, I believe standardization is even more important.”

Without clear standards, the benefits of technology adoption can be limited.

Standardization fosters interoperability, enabling various stakeholders to exchange trusted data seamlessly. This reduces the risk of errors and enhances transparency and efficiency across the trade finance ecosystem.

While technology plays a pivotal role, it’s not the sole solution, and it must go hand in hand with legal harmonization and financial inclusion.

Ensuring that digital transactions are legally recognized and hold the same weight as paper-based ones is crucial, and achieving this equality in the eyes of the law requires regulatory support and collaboration between governments, industry bodies, and financial institutions.

Financial inclusion is another key objective, especially in emerging markets where digitisation can significantly expand access to financial services.

Stevenson said, “Look at Safaricom in Africa. They have over 100,000 farmers on their phones conducting banking and conducting market analysis, and the farmers are being lent to based on that. They’re putting the banks at risk because the banks don’t want to take these farmers on as clients, but Safaricom thinks this is a great business. There’s a whole technology gap that can be jumped in terms of bringing in more people into the financial systems.”

Bridging the financial inclusion gap requires collaboration between traditional financial institutions and innovative digital service providers.

The roundtable at Sibos 2023 in Toronto illuminated the complex issues that the global trade industry must navigate.

Echoing the sentiments expressed during the Sibos plenary opening speech, Canada stands as a traditional gathering place for many nations, including the Mississaugas, Anishinaabe, Ojibwe tribes, and Wendat people.

This spirit of gathering and collaboration serves as a metaphor for the industry’s future path.

Just as Toronto embodied dynamism and diversity, the future of trade digitalisation hinges on creating an ecosystem where technology and regulation converge to enhance transparency, efficiency, and financial inclusion.

In these uncertain times, the industry has the opportunity to coalesce into an economic force for good, fostering collaboration and partnership for the greater good.

BAFT Releases Updated Correspondent Banking Relationship Guide, Respondent’s Playbook 2.0

BAFT released today an updated version of its Respondent’s Playbook for Obtaining and Maintaining a Correspondent Banking Relationship.

The BAFT Respondent’s Playbook 2.0: A Correspondent Banking Relationship Guide serves as a roadmap for respondent banks on international anti-money laundering and combating the financing of terrorism (AML/CFT) standards. This updated correspondent banking relationship guide provides actions that may improve the ability of respondent banks to obtain and maintain a correspondent banking relationship.

This is an update to the 2019 guidance document for users of correspondent banking services. The Respondent’s Playbook 2.0 newly outlines the decision-making process of correspondents establishing new and reviewing existing relationships and the measures that respondents may take to increase the likelihood of a favorable outcome.

The 2023 version incorporates current regulatory changes in the marketplace and includes a new section on the ISO 20022 migration in addition to sections covering:

An Introduction on the Current State of Correspondent Banking
Establishing a New Correspondent Relationship
Maintaining an Existing Correspondent Relationship
Options for Respondent Banks Unable to Obtain or Maintain a Relationship
Special Considerations for Money Services Businesses and Fintechs
Frequently Asked Questions from Respondent Banks

BAFT Members can download the Respondent’s Playbook 2.0: A Correspondent Banking Relationship Guide for free. Non-members can purchase the updated guide through the BAFT Store.

Navigating the Future of Digital Payments: Efficiency, Security, and Compliance

In an era marked by technological advancement and rapid digitization, the landscape of financial transactions has undergone a transformative shift. Traditional modes of payment, such as checks and physical currency, have given way to the convenience and efficiency of digital payments.

By Deepa Sinha, Vice President of Payments and Financial Crime, BAFT via Trade Finance Global

Automated Clearing House (ACH), wire transfers, and credit cards have become the cornerstones of modern commerce, enabling seamless transactions across borders and time zones. However, as these digital payment methods flourish, industry stakeholders are increasingly cognizant of the inherent risks that come hand-in-hand with this progress.

The Digital Advantage: Efficiency and Accessibility

Digital payments have revolutionized the way businesses and consumers conduct transactions, offering unparalleled convenience and speed. ACH transfers allow for the automatic movement of funds between accounts, streamlining processes like payroll and bill payments.

Wire transfers expedite international transactions, eliminating the time-consuming intermediaries of traditional cross-border commerce. Credit cards, with their widespread acceptance and instant payment capabilities, have become the go-to choice for in-store and online purchases.

Beyond the convenience, these digital methods have democratised financial access. Small businesses can now compete on a global scale, reaching customers beyond their local markets. Consumers benefit from the flexibility to manage their finances, make purchases, and pay bills with a few clicks. However, these benefits come intertwined with potential risks that necessitate careful consideration.

Navigating the Risks: Security and Fraud

The rise of digital payments has also given rise to an array of cybersecurity challenges. With transactions occurring in the virtual realm, the potential for cyberattacks, data breaches, and fraud has grown exponentially.

While security breaches predominately occur with merchants connected to the network rather than the payment systems themselves, malicious actors are constantly seeking vulnerabilities in payment systems to gain unauthorized access to sensitive information, leading to financial loss and reputational damage for both businesses and consumers.

ACH transactions, while efficient, can be susceptible to account takeovers and unauthorized withdrawals. Wire transfers, particularly in international contexts, may be subject to fraudulent instructions that divert funds to the wrong destinations.

Credit card fraud remains a persistent concern, with cardholder information being compromised via retailer breaches. As these risks evolve, industry stakeholders must adopt comprehensive security measures to safeguard digital transactions.

The Role of Regulations and Compliance

Recognizing the critical need to address these challenges, regulatory bodies have implemented measures to protect digital payment ecosystems. The Payment Card Industry Data Security Standard (PCI DSS) provides robust requirements for safeguarding credit and debit card data, requiring encryption, regular security assessments, and compliance reporting.

A lack of PCI compliance by non-bank entities (major retailers, most prominently) has been the proximate cause of major data breaches, demonstrating that a secure ecosystem relies on compliance by all data handlers.

The EMVCo (Europay, Mastercard, and Visa Consortium)’s global card and mobile payment security standards are a major step forward in securing new payment types and have reduced payments fraud worldwide. The new EMV Secure Remote Commerce (SRC) standard is increasingly found online, where it’s called “Click to Pay” and leverages a combination of methods to secure card-not-present transactions.

The Bank Secrecy Act and Anti-Money Laundering regulations impose robust due diligence practices on financial institutions, mitigating the potential misuse of digital payment platforms for illicit activities.

Yet, achieving compliance is not a one-size-fits-all solution. Industry participants must tailor their security protocols to their specific operational landscapes. Robust authentication mechanisms, multi-factor identification, adoption of the latest standards from bodies like the PCI Council and EMVCo, and real-time transaction monitoring are among the strategies that can fortify digital payment platforms against threats.

Uneven regulations between banks and non-banking financial institutions across the global payments industry are a problem that needs to be addressed. The BAFT Global Payments Industry Council, comprised of senior bankers in global payments, is publishing a collaborative white paper titled “Uneven Regulations in Payments”, which is a model code for how to remedy the uneven payments landscape.

It addresses the uneven regulations’ four themes and their implications:

Regulatory Oversight,
Extension to Sponsorship – Indirect Scheme Participation,
Consistency of KYC/CDD Requirements,
Permissibility of Cross-Border Activity.

The overarching principle should be to avoid ambiguity or “silent” rules, which will then lead to different interpretations and difficult enforcement. The paper will be published later this year.

Collaboration and Innovation as Defenders

As the digital payment landscape continues to evolve, collaboration and innovation emerge as vital strategies for managing risks. Industry stakeholders must come together to share insights, best practices, and emerging threat intelligence.

Financial institutions, retailers, fintech startups, cybersecurity experts, and regulatory bodies must forge partnerships to create a united front against cyber threats.

Furthermore, embracing technological advancements such as artificial intelligence (AI) and machine learning can empower payment platforms to detect anomalies and patterns that indicate fraudulent activities. Real-time fraud detection algorithms can provide an additional layer of security, swiftly identifying and blocking suspicious transactions.

No Pain No Gain

The ongoing digital payment revolution offers a host of benefits, enabling businesses and consumers to transact with unprecedented ease. However, these advantages are accompanied by inherent risks that require strategic vigilance and action.

Security breaches, fraud, and compliance challenges underscore the need for comprehensive risk management strategies. By implementing robust security measures, adhering to regulations, fostering collaboration, and leveraging innovative technologies, the industry can navigate the intricate landscape of digital payments and usher in an era of secure and seamless transactions.

BAFT Launches Advanced Trade Finance Certificate

WASHINGTON — BAFT, the leading global financial services association for international transaction banking, today announced the launch of its new Certificate in Advanced Trade Finance (CATF) which will offer an in-depth overview of the trade finance business, supply chain finance, cross-border risk, and liquidity solutions. This is a level II certificate, tailored to those with more than three years of trade finance experience.

This on-demand course, available through BAFT’s Learning Management System, will cover 11 modules that focus on a range of advanced trade finance topics, including:

Managing and mitigating emerging market and other cross-border risks;
Understanding the links between supply chain finance and procurement;
Understanding inventory finance;
Secondary markets, insurance and asset distribution in trade and supply chain finance;
Advanced financial crimes, compliance and fraud in supply chain finance;
Digital trade and trade financing;
Best practices in trade and supply chain finance operations;
ESG and sustainable trade finance;
Deep-tier supply chain finance and addressing the trade finance gap;
Nonbank providers of trade and supply chain finance; and
Trade finance and supply chain finance from the corporate and commercial practitioners’ point of view.

“BAFT is dedicated to promoting best practices in international transaction banking and serving as a trusted authority within the industry,” said Scott Stevenson, Senior Vice President of Trade for BAFT. “CATF reflects this commitment by offering a curriculum that is both relevant and up-to-date, exceptional in quality of content and delivery, and ensures participants are well prepared to navigate the complexities of the global trade landscape.”

The courses will be led by Craig Weeks, an independent banking consultant with more than 30 years of experience in trade finance, supply chain, and transacting banking operations, and Alexander Malaket, a consultant in international trade, trade financing, trade-related international development and sustainability/ESG.

The course will take between 12 to 15 hours of study to complete and participants must pass a final assessment to be certified.

Learn more about the new Certificate in Advanced Trade Finance and contact [email protected] with any inquiries.

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