BAFT has recently released a new whitepaper titled “Guidance for Identifying Potentially Suspicious Activity (“Red Flags”) in Trade Finance”, an update to the original 2015 publication.

Key highlights include:

• This paper updates BAFT’s 2015 “Guidance for Identifying Potentially Suspicious Activity In Letters of Credit and Documentary Collections” by expanding the red flags framework from 16 to 50 distinct risk indicators organized across five categories in Trade Finance related transactions and activities.
• A key addition is a comprehensive new section on emerging technologies—artificial intelligence, machine learning, natural language processing, and network analytics—that are transforming how institutions detect suspicious activity at scale.
• The expanded list reflects current market conditions and incorporates input from a broader range of regulatory and industry sources globally.

The “red flags” presented herein are intended as a practical reference to support staff training, operational procedures, and investigative frameworks. While not exhaustive, they reflect commonly observed risk indicators relevant to trade finance activities and address contemporary threats including sanctions evasion, proliferation financing, and illicit shipping patterns.

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 Note: This white paper is free for BAFT members. Non-members can download it for USD$100.