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BAFT-IFSA Member Update - December

by User Not Found | Dec 19, 2013

BAFT-IFSA Member Update

December 19, 2013

Table of Contents

News and Developments

Committee and Council Updates



Education and Training

Global Trade and Finance Update

Upcoming Events

  • January 19-21, 2014
    Global Annual Meeting - Europe - London, England

  • February 13-14, 2014
    Southeast Global Trade Workshop - Tampa, FL

  • May 4-7, 2014
    Annual Conference - The Americas - La Jolla, CA

  • May 7, 2014
    Regulatory and Compliance Forum - La Jolla, CA

  • June 5-6, 2014
    New York Global Trade Finance Workshop - Deutsche Bank, New York, NY

  • June, 2014
    Global Payments Symposium - New York, NY

  • July, 2014
    West Coast Global Trade Finance Workshop - City National Bank, Los Angeles, CA

  • September 28, 2014
    Global Councils Forum - Boston, MA
    (By Invitation Only)

  • November 12-14, 2014
    24th Annual Conference on International Trade - InterContinental Magnificent Mile Chicago, IL

Thank You To Our Affinity Partners

jpmorgan - transparent -intl trade          Bank of America-web          PNC          BNP Paribas

Quote of the Week

“For the first time in our history: the WTO has truly delivered. I challenged you all, here in Bali, to show the political will we needed to take us across the finish line. You did that. And I thank you for it. With the Bali package you have reaffirmed not just your commitment to the WTO — but also to the delivery of the Doha Development Agenda. The decisions we have taken here are an important stepping stone towards the completion of the Doha round."

World Trade Organization Director-General Roberto Azevêdo at the conclusion of the Ninth WTO Ministerial Conference, Bali, December 7, 2013.

News and Developments

BAFT-IFSA Participates in Panel Discussion on Regulatory Harmonization with Key Government Groups and other Stakeholders

BAFT-IFSA participated in a panel discussion on Regulatory Harmonization moderated by U.S. House of Representatives Ranking Member Gregory W. Meeks (NY-05), House Subcommittee on Financial Institutions and Consumer Credit, and the New Democrat Coalition-Financial Services and Retirement Security Task Force. The panel explored the implications of divergence in global regulations and the impact on competitiveness in banking, trade, and job creation.

Comments Submitted on FRB Payment System Improvement Paper

On December 13, the American Bankers Association (ABA), of which BAFT-IFSA is an affiliate, submitted a letter to the Federal Reserve Bank (FRB) on its Payment System Improvement Public Consultancy Paper, providing comments on the FRB's perspectives on gaps, opportunities, and desired outcomes on the future of the U.S. payment system. BAFT-IFSA members worked with the ABA to note that commercial cross-order payments can be improved through the adoption of international standards and providing better remittance information with each payment and how the FRB can work with other international organization to improve cross-border payment services.
To read the letter, click here.

Recorded Sessions During the 23rd Annual Conference on International Trade Now Available

Were you unable to attend the dynamic sessions during the recent Annual Trade Conference in Chicago? Or, do you need to revisit the sessions? Recorded sessions are now available for a fee to non-registered members and non-members. You can purchase and view the full conference approved recorded sessions, or download one or a few sessions of interest. To purchase the sessions, simply:

  1. Go to
  2. Click on “Product Store” on the right side of the main navigation
  3. Click on “Click Here to View Different Purchase Options” link
  4. Select the video recording you want to purchase then click “Add to Cart” button
  5. If you wish to purchase more than one video, click “View My Cart” button, then click on “Continue Shopping” button, then proceed with step 3.
  6. If you have selected all videos to purchase, click “View My Cart” button, then the green “Check Out” button to proceed with payment and complete your transaction.

Recordings and presentations are complimentary to registered attendees.


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Committee and Council Updates

Council Update

Global Trade Industry Council

The Global Trade Industry Council (GTIC) requested the formation of a BAFT-IFSA Best Practices AML KYC Working Group to address these issues from a global perspective. The working group includes representation from the business and compliance areas of banks. The first meeting took place in November. Traditional Trade products will be the initial focus at both the client and the transaction level.

Transaction Banking Group Leaders

The BAFT-IFSA Transaction Banking Global Leaders (TBGL) met and discussed progress of advocacy initiatives related to Basel III and regulatory harmonization. The group also affirmed its support of various market efforts to develop an industry utility to support a more efficient Know Your customer (KYC) process.

Asia Council

Planning continues for 2014, following the November meeting. Key dated for 2014 include the Asian Banker Summit in Kuala Lumpur, as well as GTR/Exporta events in Asia through 2014.

Trade Committees and Working Groups

Financial Supply Chain Committee

The Financial Supply Chain Committee initiated work on drafting a best practices document related to compliance and AML issues in BPO (Bank Payment Obligation) transactions. The Committee expects to review a first draft in its January 2014 meeting.

Asia Financial Supply Chain Committee

The Asia Financial Supply Chain committee is working to re-frame the Receivables Purchase and Regional Practices Guide, while working to put an Asia-region focused Basel-III teleconference together.

Commercial Letters of Credit Committee

The Commercial Letters of Credit Committee discussed one ‘’Ask the Expert’’ question regarding export license requirements, as well as several open questions/topics relating to draft endorsements, a reduction clause, discrepancies on invoices, anti-boycott language, and ‘’in transit inventory financing’’. An ad hoc meeting was also held on December 11, 2013 to finalize the review of a draft presentation prepared by the South East Regional Committee covering ISBP745, which will be presented at the Southeast Global Trade Workshop on February 13-14, 2014 in Tampa, Florida.

The London Group

The London Group continues its work on completing the Term Sheet requested by the GTIC to include an outline of a structure, an investor education program, and an indication of the financial commitment that would be needed to plan and attract institutional investors to trade assets.

Trade Compliance Committee

The Trade Compliance Committee discussed upcoming events from BAFT-IFSA, monitoring transactions for dual use goods, and the use of sanction disclaimer clauses.

Trade Finance Committee

The Trade Finance Committee discussed last month’s presentation on the Banking Environment Initiative’s Sustainable Shipment LC. The committee also discussed the governance structure of the committee and how to encourage broader committee participation. The committee reviewed a documentary collections question on the requirement for original signed drafts. They also received an update from the Trade Finance Maintenance Subgroup working on the CAT 7 SWIFT standard message change requests. The Trade Loan Documentation Working Group advised the Trade Finance Committee that it circulated a close-to-final draft of the Bank to Bank Master Trade Loan Agreement and explained its approach to engaging borrower banks to obtain their input.

Trade Loan Documentation Working Group

Berwin Leighton Paisner (BLP) provided an updated draft of the Bank to Bank Master Trade Loan Agreement to the Trade Loan Documentation Working Group members. This is the near-final draft, subject to changes that may be required following the discussions with any borrowers. The Working Group has developed a plan to approach borrowers to get input into this agreement from their perspective.

Oil and Commodity LC Working Group

The Oil and Commodity LC Working Group continues its work on developing the best practices for handling LC and Demand Guarantee transactions tied to oil and commodities and continues drafting a best practices document that will address industry commonalities, outline potential risks and best ways address them. The first complete draft will be reviewed by the committee in January 2014.

Risk-Purchased Letters of Credit Subcommittee

The group is in the process of documenting best practices. As a participants in a syndicated facilities, the goal is to define best practices so that information and documentation is transmitted promptly to those participants. Each member of the committee responded to a questionnaire, and the responses are being used to document best practices.

Payments Committees and Working Groups

Funds Transfer Product Management Committee

The Funds Transfer Product Management Committee discussed Regulation E and that the CFPB is exploring an extension of the exemption for depository institutions that are FDIC-insured. The committee noted that the FFIEC reporting requirement has not yet been released. The committee reviewed the status of the development of the business case for the U.S. to adopt ISO 20022, noting that the consultant would be releasing results in the first quarter of 2014. The committee reviewed the comments made to the ABA (and submitted to the Fed through the ABA) on the FRB Consultation Paper on Payment System Improvement. The committee discussed Field 59 proposed changes and requested that members solicit feedback from their institutions to this committee to submit to SWIFT. The committee reviewed the FATCA webinar, proposed topics for the BAFT-IFSA Annual Conference - The Americas, and committee plans for 2014.

Regulation E Task Force Update

The Reg E Task Force continued discussions on the implementation of Dodd-Frank 1073 Regulation E and the status of FFIEC reporting and the understanding that the CFPB will issue reporting requirements or possibly a survey before the end of the year. The Task Force will move to an ad hoc meeting schedule in 2014.

Payments and Compensation Committee

The Payments and Compensation Committee held an in-person meeting in December and continued discussions on Dodd-Frank 1073 Regulation E, SWIFT work, FATCA, the Fed’s “Payment System Improvement” paper, and the U.S. adoption of ISO 20022. The committee has also begun planning for the Global Payments Symposium, which is scheduled for June/July 2014.

Information Reporting Subcommittee

The Information Reporting Subcommittee discussed three scenarios regarding the mapping of customer reference data across MT910/942/940/950 for Fed, CHIPS and SWIFT messages. The committee discussed those situations where 20/21 can be system generated messages and clarification needs to be added in the SWIFT handbook. The committee received an update on the development of the business case for the U.S. adoption of ISO 20022 and the expectation that results will be presented to the business community in the first quarter of 2014.

If members have any "Ask the Expert" questions for a committee to review, please send them to Melissa Edwards at Names of members and banks will be removed to protect privacy. Please note that all comments are unofficial from a BAFT-IFSA perspective and are only member comments.


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Membership Update

A third dues invoice for Fiscal Year 2014 was emailed to all unpaid members during the first week of December. If you have not yet paid your dues, please try to do so before the end of the year. If you have any questions about your invoice or did not receive it, please contact Channing Daniel, Senior Manager of Member Outreach, at

BAFT-IFSA would like to welcome the following new members of the association:

  • Zürcher Kantonalbank in Zurich, Switzerland - Financial Institution
  • Sullivan & Worcester – London, United Kingdom – Supplier Basic

Affinity Partner Program

The BAFT-IFSA Affinity Partners Program provides greater value for our member institutions’ marketing dollars. Partners receive year-long brand exposure and recognition in addition to specific marketing opportunities at targeted conferences and events. Opportunities range from various BAFT-IFSA sponsorship events and webinars to logos and information available to all our members on our website and in newsletters and exclusive stand-alone emails to our members. Learn more about Affinity Partnerships at or contact Kathryn Hoch.


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BAFT-IFSA Global Annual Meeting - Europe: Hotel Room Deadline January 2, 2014

Attending the Global Annual Meeting - Europe in London this January 19 - 21? Make sure to book your hotel room at the Landmark London no later than January 2, 2014 to take advantage of special group rate of £180 + VAT. You can book your room online or call the hotel directly at (44) (0) 20 7631 8000. Please mention “BAFT-IFSA” when placing your reservation to receive the special group rate.

The Global Annual Meeting, "Driving Higher Standards", will cover a broad range of current topics including Know Your Customer (KYC), Liquidity/Basel III, Commodities Financing, Sustainability, Innovation and more from thought leaders in the industry.

Keynote speakers include:

  • John Winter, CEO, Barclays
  • Sharon Bowles, MEP, Chair of the Committee on Economic and Monetary Affairs, European Parliament
  • Kah Chye Tan, Chair, International Chamber of Commerce Banking Commission
  • Matthew Austen, Partner, Head of CIB EMEA, Oliver Wyman

Register today! Groups or 3 or more receive a $350 per person discount.

Sponsorship opportunities are still available Learn more. Contact Kathryn Hoch at for availability and details.

Early Bird Registration Ends January 10 for the Southeast Global Trade Finance Workshop

Are you involved in trade operations? Do letters of credit, collections, BPO, ISBP sound familiar? Then the Southeast Global Finance Trade Workshop is for you! This is an interactive workshop where topics such as Incoterms, changes to ISBP745, marine insurance, commodities letters of credit, and more will be discussed with trade operations industry experts.

Southeast Global Trade Finance Workshop
February 13-14, 2014
Citi Conference Center
Tampa, FL

Register today to take advantage of early bird discount of up to $200. Early bird registration ends January 10, 2014.

24th Annual Conference on International Trade Announced

Following the successful 23rd Annual Conference on International Trade in Chicago, the 24th Annual Conference on International Trade will return to Chicago at the InterContinental Magnificent Mile on November 12-14, 2014. Save the date for this must attend conference for trade professionals.


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Education and Training

Webinar Series

BAFT-IFSA recently hosted the webinar: “Are You Ready for FATCA”, which is now posted on the BAFT-IFSA website in the Past Webinars area. The 90-minute informative webinar presents a discussion of the basic requirements of the Foreign Account Tax Compliance Act (“FATCA”), information on the implementation deadline of the various facets of FATCA, and examines the impact of FATCA on payment clearing services and trade (treatment of rebates, revenue sharing, risk distribution, etc.)

Members may access this webinar free of charge. The webinar panel includes industry consultants Laurie Hatten-Boyd, Principal at KPMG, Deborah Pflieger, Principal - Financial Services Organization at E&Y and Candace B. Ewell, Principal TCDR at PwC, and bank product experts Henry Pfeiffer of JPMorgan Chase, Steve Wojciechowicz of Deutsche Bank, and Brenda Santoro of SVB Financial Group

Previously held BAFT-IFSA webinars, including “Trade Finance Compliance: Challenges and Opportunities in Today’s Global Economy” (November 14, 2013), “Non-Straight Through Payments to Banks in Europe” (August 7, 2013), "Trade Banks Taking a Leadership Position in International Trade" (April 2013), and Basel III Update (March 2013) can now be found on the website in the past webinars section of the BAFT-IFSA website. Please note: you will need to log on as a member to access these webinars.


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Global Trade and Finance Update


WTO: Round-the-Clock Consultations Produce ‘Bali Package’

The WTO’s Bali Ministerial Conference concluded a day later than scheduled on December 7, 2013 with agreement on a package of issues designed to streamline trade and boost least developed countries’ trade and help development more generally. Most significant for global commerce is the trade facilitation part of the package, which is about cutting red tape and speeding up port clearances. The Bali Package is a selection of issues from the broader Doha Round negotiations. Echoing calls from many delegations, WTO Director-General Azevêdo said members’ attention should now turn the rest of the round, known semi-officially as the Doha Development Agenda
Read More

WTO: G20 Trade Restrictions Increase As Trade Flows Slow Down

In the last six months, most G20 members have put in place new trade restrictions or measures that have the potential to restrict trade, according to the latest WTO report on G20 trade measures published on December 18, 2013. A total of 116 new trade restrictive measures were identified since the last WTO report, up from 109 measures recorded for the previous seven-month period.
Read More

Commitment to Improve AML/CFT in the MENA Region

The Middle East and North Africa Financial Action Task Force (MENAFATF) is working towards the application of consistent and rules-based arrangements for the follow-up process to mutual evaluations. In his speech to the MENAFATF Plenary in Bahrain, FATF President Vladimir Nechaev welcomed the progress made by MENAFATF in this area. He stressed that a strong and rigorous long-term follow-up process is key to improving national systems for combating money laundering and terrorist financing. During his remarks at the Plenary, Mr Nechaev also highlighted recent changes and further challenges ahead for the FATF Global Network.
Read More

Australia Assumes Presidency of the G20

Australia assumed the Presidency of the G20 on December 1, 2013. Australia's G20 Presidency in 2014 will focus on promoting stronger economic growth and more jobs and making the global economy more resilient to deal with future shocks. As this year's host. Australia has invited Singapore an New Zealand to join the G20 table on 2014.
Read More

Capital Requirements for Banks' Equity Investments in Funds - Final Standard

The Basel Committee on Banking Supervision has revised its policy framework for the prudential treatment of banks' investments in the equity of funds that are held in the banking book. The revised policy framework will take effect from January 1, 2017 and will apply to investments in all types of funds (e.g. hedge funds, managed funds, investment funds). The framework will be applicable to all banks, irrespective of whether they apply the Basel framework's Standardised Approach or an Internal Ratings-Based (IRB) approach for credit risk
Read More

OECD: Global Forum Moves Towards Automatic Exchange of Tax Information and Transparency

The Financial Stability Board (FSB) discussed vulnerabilities affecting the global financial system and reviewed work plans for completing core financial reforms. The FSB discussed work plans to complete core financial reforms in 2014, specifically building resilient financial institutions and ending too-big-to-fail, shadow banking, and making derivatives markets safer, in addition to receiving updates on accounting and auditing, regional consultative groups, and FSB governance.
Read More

Bank for International Settlements: Addressing Risks to Financial Stability

In his speech to the 49th SEACEN Governors' Conference and High-level Seminar, Kathmandu, Nepal, November 21, 2013, Mr. Jaime Caruana, General Manager of the Bank for International Settlements, noted that regulation typically cannot keep up with the pace of financial innovation. He referenced two suggested measures. First, supervision should be proactive and keep the systemic risk dimension in clear view. Second, monetary policy could help fill the "cracks" in the regulatory framework and constrain incentives for increased leverage.
Read his full speech


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Europe and Central Asia

Update: The EU's Bilateral Trade and Investment Agreements

The EU is conducting on-going negotiations with the U.S. Transatlantic Trade and Investment Partnership), China, Canada (Comprehensive Economic and Trade Agreement), Japan, Association of Southeast Asian Nations, Malaysia and Vietnam(Free Trade Agreement), Southern Mediterranean, India, Mercosur, Gulf Cooperation Council, African, Caribbean and Pacific Countries (ACP). For details on these negotiations and Free Trade Agreements finished, but not yet applied, click here.

A Comprehensive EU Response to the Financial Crisis: Substantial Progress Towards a Strong Financial Framework for Europe and a Banking Union for the Eurozone

Since 2010 the European Commission has proposed nearly 30 sets of rules to ensure all financial actors, products and markets are appropriately regulated and efficiently supervised. These rules are the basic framework for all 28 Member States of the EU and underpin a properly functioning single market for financial services. This memo sets out what has been done so far to create a robust financial framework for all 28 Member States and where the EU stands in building the banking union. The banking union is specifically for countries which share the euro, although it is also open to all non-euro EU Member States who want to join.
Read More

Eurostat Releases First Estimate for October 2013 Euro Area International Trade in Goods Surplus 17.2 Billion, 4.3 Billion Euro Surplus for EU28

The first estimate for the euro area (EA17) trade in goods balance with the rest of the world in October 2013 gave a 17.2 billion euro surplus, compared with +9.6 billion in October 2012. The September 2013 balance was +10.9 billion, compared with +8.6 billion in September 2012. In October 2013 compared with September 2013, seasonally adjusted exports rose by 0.2%, while imports fell by 1.2%. These data are released by Eurostat, the statistical office of the European Union.
Read More

Speech by Vítor Constâncio of the ECB: Banking Union and the Future of Banking

Vítor Constâncio, Vice-President of the European Central Bank, spoke at the IIEA Conference on “The Future of Banking in Europe” in Dublin on December 2, 2013 and discussed how the Single Supervisory Mechanism (SSM) will affect the supervision and the practice of banking in the euro area and how the process of structural change in euro area banking sector will affect intermediation, and what this will mean for Europe’s traditional universal banking model.
Read More


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Asia, Africa, and the Middle East

Developing Asia Growth Outlook Steady As Industrial Economies Firm

An improving growth outlook in Japan and the United States paired with stronger-than-expected performance in the People’s Republic of China (PRC) support a steady growth outlook for developing Asia, says a new Asian Development Bank (ADB) report. The Asian Development Outlook Supplement forecasts growth of 6.0% in 2013 for ADB’s 45 developing member countries, improving to 6.2% in 2014. The forecasts are unchanged from the Asian Development Outlook Update issued in October.
Read More

ADB Partners with IE Singapore to Help Expand Regional Trade

The Asian Development Bank (ADB), through its Trade Finance Program (TFP), is partnering with International Enterprise (IE) Singapore, the government agency driving Singapore’s external economy, to help boost trade flows within Asia and the Pacific region by about US$1 billion every year. IE Singapore launched its Trade Facilitation Scheme, which will operate through ADB's TFP, to help companies in Singapore and their buyers in emerging Asian markets gain access to more finance. ADB’s TFP provides guarantees and loans through banks to support trade.
Read More

Financial Inclusion for a Sustainable and Inclusive Growth in Africa

A new publication, Financial Inclusion in Africa, released on December 9 by the Complex of the Chief Economist of the African Development Bank (AfDB) finds that for sustained and inclusive development to thrive, a great deal of innovation is needed to ensure that appropriate financial services and instruments are put in place for the benefit of the poor and other vulnerable groups in Africa.
Read More


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U.S. and Latin America

U.S. Trade Deficit Decreases, Exports Increase to $192.7 Billion, Imports Increase to $233.3 Billion in October 2013

The U.S. Census Bureau and the U.S. Bureau of Economic Analysis, through the Department of Commerce, announced that total October exports of $192.7 billion and imports of $233.3 billion resulted in a goods and services deficit of $40.68 billion, down from $43.0 billion in September, revised. October exports were $3.4 billion more than September exports of $189.3 billion. October imports were $1.0 billion more than September imports of $232.3 billion.
Read More.

FinCEN, Federal Reserve Finalize Rule Amending Definitions in the Bank Secrecy Act

The Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury, and the Federal Reserve Board on December 3, 2013 announced a final rule amending the definitions of "funds transfer" and "transmittal of funds" under regulations implementing the Bank Secrecy Act. The final rule adopts the amendments as proposed in November 2012. The amendments to the definitions maintain the current scope of funds transfers and transmittals of funds subject to the Bank Secrecy Act and are necessary in light of amendments to the Electronic Fund Transfer Act made by the Dodd-Frank Wall Street Reform and Consumer Protection Act.
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Export-Import Bank Board Adopts Revised Environmental Guidelines to Reduce Greenhouse Gas Emissions

The board of directors of the Export-Import Bank of the United States (Ex-Im Bank) adopted revisions to its environmental procedures and guidelines governing high-carbon intensity projects, aligning the Bank with President Obama’s goal of reducing carbon pollution, while maintaining the Bank’s focus on continuing to help create and support American export-related jobs. The revised guidelines adopted today require carbon capture and storage in most countries in order to secure Bank financing for coal-fired power plants, but would provide flexibility for the Bank with respect to the important energy needs of the poorest countries in the world.
Read More

FATCA Update: U.S. Signs Historic Agreements With Cayman Islands, Costa Rica To Fight Offshore Tax Evasion

The United States signed intergovernmental agreements (IGAs) with the Cayman Islands and Costa Rica to implement the Foreign Account Tax Compliance Act (FATCA). Signed November 29, 2013, the Cayman Islands IGA is a Model 1B agreement, meaning that FFIs in the Cayman Islands will be required to report tax information about U.S. account holders directly to the Cayman Islands Tax Information Authority, which is the sole channel in the Cayman Islands for the provision of tax-related information to other governments. The Cayman Islands Tax Information Authority will in turn relay that information to the IRS. Additionally, the United States and the Cayman Islands also signed a new Tax Information Exchange Agreement (TIEA), to take the place of the original TIEA signed in 2001. The Costa Rica IGA was signed on Tuesday, November 26, and is a Model 1A agreement, meaning that the United States will also provide tax information to the Costa Rican government regarding Costa Rican individuals with accounts in the United States.
Read More


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