BAFT News and Press Releases


January 2014 Member Update

by Patrick Devilbiss | Mar 06, 2014
January 2014 BAFT Member Update

BAFT Member Update

January 31, 2014

Table of Contents

Upcoming Events

  • 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

  • July 10-11, 2014
    Global Payments Symposium - HSBC, New York, NY

  • July 24-25, 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 Sponsors

Platinum Sponsors

  • Standard Chartered

Silver Sponsors

  • Bank of America Merrill Lynch
  • PNC
  • Bank of Montreal
  • BNP Paribas

  • Citi
  • Deutsche Bank
  • HSBC
  • JP Morgan

Quote of the Week

“I welcome the decision taken by the Basel Committee on Banking Supervision on 12 January, which modifies regulations on bank leverage in a way that will support trade. This decision is of particular significance for the availability of trade finance in the developing world, where letters of credit are a key instrument of payment. This is good news for developing countries, for the expansion of their trade and for the continued growth of South-South trade flows.”

World Trade Organization Director-General Roberto Azevêdo, January 17, 2014.

News and Developments

BIS Releases Report on Trade Finance Developments and Issues; BAFT Contributes to Analysis

On January 31, the Study Group established by the Bank for International Settlements (BIS) Committee on the Global Financial System (CGFS) released a report on the structure and recent evolution of the global trade finance market, and the interplay between changes in trade finance and international trade. In particular, it reviews the available data sources and what they reveal about the size and evolution of the market, sheds light on the performance and impact of trade finance during recent episodes of funding strains in global markets, and examines how ongoing structural changes may affect the market's future resilience. BAFT was one of the private sector organizations consulted in the formation of the report and studies on trade finance markets prepared by BAFT contributed to the analysis by the CGFS.
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BAFT-IFSA Announces Name Change to BAFT

At its Global Annual Meeting in London on January 19-21, 2014, BAFT-IFSA announced that the association officially changed its name to BAFT, the Bankers Association for Finance and Trade. The BAFT website can still be accessed through or

BAFT Hosts Global Annual Meeting in London; Elects New Officers and Directors

The Global Annual Meeting took place in London on January 19-21, 2014. Highlights of the meeting included keynote addresses by Sharon Bowles, MEP, Chair of the Economic and Monetary Affairs Committee of the European Parliament and John Winter, CEO of Barclays Corporate Banking. At that meeting, BAFT announced its newly elected board for the 2014-2015 year. Rita Gonzalez, managing director with HSBC USA, was re-elected as board chair for the 2014-2015 year. Newly elected board officers include Sara Joyce, Bank of Montreal, as Vice Chair and Michael Quinn, JPMorgan Chase, as Secretary/Treasurer. Newly elected board members include Barry Tooker, Clear2Pay and Alain Verschueren, BNP Paribas. Returning Board members are: John Ahearn, Citi; Kimberly Burdette, PNC; Tod Burwell, BAFT; David Cruikshank, BNY Mellon; Mark Garfield, Zions; Alexandra Holcomb, Westpac; Peter Knodt, Deutsche Bank; Chris Lewis, Wells Fargo; James Peterson, Northern Trust; Vinnie Raniere, Lombard Risk Management; Victor Sastri, Bank of Tokyo-Mitsubishi UFJ Ltd.; Dan Scanlan, Standard Chartered; Craig Schurr, First Merit; Ian Toone, RBC; Eszter Wijkman, SEB; Jeremy Wilson, Barclays; Stephanie Wolf, Bank of America Merrill Lynch; Andy Wright, Royal Bank of Scotland.

BAFT Hires Director of Training & Education

Lynette Bertelmann has joined BAFT as the Director of Training & Education. Lynette will plan, develop and oversee all training and education programs offered by BAFT including e-learning, classroom, workshop and certification programs such as the Certified Documentary Credit Specialist (CDCS) certification program. Lynette will lead the development of a full global training and education curriculum, including additional certifications in trade finance, payments, and compliance based on member needs. Lynette joins BAFT from Wells Fargo, where she was a learning and development consultant supporting their international trade services, international branch platform and supporting key leadership teams within their international transaction banking business. She holds a B.A. from Florida Atlantic University with a major in Political Science and minor in Business Administration and has over 15 years of learning and development experience.

BAFT Opens Registration for 2014 CDCS Examination

Registration for the 2014 CDCS exam is now open. The deadline to apply for the 2014 examination is February 28, 2014. The exam dates for 2014 are April 11 and April 12. All CDCS candidates registering for the 2014 exam will receive The Guide to Documentary Credits. Developed by BAFT, the Institute of Financial Services and industry representatives, it provides the main body of knowledge required for the examination. The study text has been updated to incorporate UCP 600 and other revisions. Candidates will also receive the CDCS® Candidate Study Guide and CDCS® Practice Test. To register, click here. Please contact Lynette Bertelmann at, if you need further assistance.


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Committee and Council Updates

Council Update

Global Trade Industry Council

The Global Trade Industry Council (GTIC) held an in-person meeting in London during the BAFT Global Annual Meeting and received updates on various working group initiatives, including Trade Loan Documentation, the London Group, and the Best Practices AML KYC Working Group and the regulatory landscape. The members recognized the four years of focused lobbying work resulting in a very positive industry outcome, with the Basel Committee publishing a revised version of the Basel III Leverage Ratio.

Best Practices AML KYC Working Group

The Best Practices AML KYC Working Group is actively engaged in reviewing and updating the 2008 BAFT-IFSA Guidelines for Bank Secrecy Act/Anti-Money Laundering for Trade Services.

Asia Council

BAFT will coordinate panel presentations at the Asian Banker Summit in Kuala Lumpur in May 2014, and four GTR/Exporta Trade Conferences throughout Asia including Jakarta (April 24), Singapore (Sept. 9-11), Beijing (October) and Kuala Lumpur (November).

North America Regional Bank Council

The North America Regional Bank Council met on January 23rd and covered a diverse range of topics impacting regional North American banks. Topics of discussion included FATCA, RMB payments, IACH, BPO, and Dodd-Frank follow-up. The North America Regional Banks Council is scheduled to meet again in March 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 at its next meeting.

Commercial Letters of Credit Committee

The Commercial Letters of Credit Committee reviewed two case studies prepared by the South East Regional Committee, which will be presented at the Southeast Global Trade Workshop on February 13-14, 2014 in Tampa, Florida. One case study was about a presentation of documents where an issuing bank raised several discrepancies, and the other case study examined a pro forma invoice for which an LC was issued covering goods to be inspected by the FDA and the related trade term.

Standby Letters of Credit Committee

The Standby Letters of Credit Committee members received updates on BAFT events and activities, as well as updates from regional chairs. Continued discussions centered around any impact the ISBP has had on standby processing, as well as whether U.S. banks are able to issue guarantees. Open forum discussions topics included receiving applications and agreements that were digitally signed. Finally, the committee members discussed the possibility of developing a best practice guide to assist banks on how to correctly type a standby to be either financial or performance, as the committee has received numerous request for assistance.

Structured Trade/Export Finance Committee

The Structured Trade/Export Finance Committee maintains regular dialogue with the Ex-Im Bank on program changes, organization changes, and reauthorization updates. Quarterly Ex-Im conference call updates will resume this quarter.

Trade Compliance Committee

The Trade Compliance Committee discussed the changes to the Commerce Department’s Control list and the corresponding removal of these military-related goods from the U.S. Munitions list. The committee also discussed the SWIFT Global KYC Registry and other venders that provide similar solutions, as well as three “Ask The Expert” questions: the first pertaining to a compliance-related clause received from a foreign bank that appears to becoming more prevalent in Letters of Credit being received, the second concerning the perception of a potential increase in the mismatch of purchase order numbers on import Letters of Credit, with the thought that this scenario may constitute a “Red Flag”, and lastly records retention periods with an emphasis on “Evergreen” Standby Letters of Credit.

Trade Finance Committee

The Trade Finance Committee held an in person meeting in London to encourage new European, Middle Easter and African banks to join the association and highlight to existing members the benefits of participating in the BAFT committees. The committee discussed adoption of the BPO product and the FATCA webinar and received updates on the Trade Loan Documentation Working Group and the Oil and Commodity LC Working Group.

Trade Loan Documentation Working Group

Members of the Trade Loan Documentation Working Group have been reviewing the near final draft of the English Law Master Bank to Bank Trade Loan Agreement with the borrower community in Asia, Europe and Latin America to obtain their perspective on the latest draft. The next step is to focus on developing a New York Law equivalent.

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 at its next meeting.

Risk-Purchased Letters of Credit Subcommittee

The group is in the process of documenting best practices. As a participant 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.

Bank-to-Bank Reimbursements Committee

The Bank-to-Bank Reimbursements Committee addressed several member Ask the Expert questions related to expiry date of an IRU and what to do if there were no funds in the Issuing Bank’s account; the committee is changing its schedule to meet every other month.

Regulatory and Legal Committees

Global Regulatory Affairs and Public Policy Committee

The Liquidity Working Group of the Regulatory Affairs Committee is finalizing comments to the U.S. Banking Agencies on the U.S. version of the Liquidity Coverage Ratio (LCR). The Working Group also met with the European Banking Authority (EBA) on January 24 to discuss clarification issues regarding the recently released EBA report on implementation of the LCR in the EU. Further work on follow up to that report is ongoing.
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Payments Committees and Working Groups

Funds Transfer Product Management Committee

The Funds Transfer Product Management Committee discussed topics for both the BAFT Annual Meeting and Global Payments Symposium. The committee received an update from the Federal Reserve on the FRB Consultation Paper on Payment System Improvements and related initiatives and reviewed the Federal Reserve’s study on non-cash payments. The committee discussed Field 59 and the SWIFT KYC registry. The committee also addressed the FFIEC-issued final call report requirements for remittance transfers and questions triggered by the BAFT FATCA webinar on Earnings Credit Rate and Rebates.

Regulation E Task Force Update

The Reg E Task Force met to review the guidance issued on January 14, 2014 by the FFIEC on the Call Report requirement for international remittances. The new reporting requirements become effective March 31, 2014 and reporting must incorporate transactions from the effective date of the new Reg E guidelines, October 28, 2013.

Payments and Compensation Committee

The Payments and Compensation Committee continued discussions on the implementation of Dodd-Frank 1073 Regulation E, FATCA, the business case for the U.S. adoption of ISO 20022, and LEI (Legal Entity Identifier), which now applies to the securities industry and could potentially move into payments. The committee received an update from SWIFT on proposed changes to SWIFT message fields, a SWIFT KYC directory, use of GIIN as part of SWIFT reference for FATCA compliance, and changes to the BIC standard. The committee discussed the testing of a potential CSL solution if the Federal Reserve was unable to provide FX services thought the Fedwire system for settlement at certain times throughout the day. The committee also discussed plans and goals for 2014, with a focus on the Global Payments Symposium, to be held July 10-11, 2014, at the offices of HSBC in New York.

Information Reporting Committee

The Information Reporting Committee discussed SWIFT OSN for payment tracking and if/why customers ask for the SWIFT OSN for payments made on their behalf for their client to give to the beneficiary bank for tracking. The group also discussed SWIFT standards changes for 2014, specifically MT942 and the use of field 86, requiring it to be preceded by field 61 to be consistent with MT940.

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

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

  • ACI Worldwide, Inc. – Charlotte, NC – Supplier Basic
  • Abu Dhabi Commercial Bank – Abu Dhabi, United Arab Emirates – Financial Institution

The first BAFT Quarterly Membership call of 2014 was held on January 15th for all regions. BAFT staff shared updates on BAFT regulatory and advocacy efforts, Council and Committee activities, conferences and workshops, webinars and member outreach activities. If you were not able to participate in this call, you can listen to a recording of it by clicking on the following link - BAFT Quarterly Membership Call. You can also access the recording on the BAFT website,, under Member Updates on the homepage.

BAFT will soon be conducting its annual membership satisfaction survey. The survey will be emailed to all members in late February so please keep an eye out for it. It only takes a few minutes to fill out the survey online, and your feedback is very important as it will help us develop and shape the programs and services that increase the value of your membership in BAFT.

We would like to grow the BAFT membership in FY2014. Please feel free to send an e-mail to with any recommendations about financial institutions, supplier companies or government agencies that you know and you feel would benefit from BAFT membership. Your suggestions are always welcomed and encouraged, as you are the best source for potential members that you may know.

Affinity Sponsor Program

The BAFT Affinity Sponsor Program provides greater value for our member institutions’ marketing dollars. Sponsors receive year-long brand exposure and recognition in addition to specific marketing opportunities at targeted conferences and events. Opportunities range from various BAFT 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 Sponsors at or contact Kathryn Hoch.


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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!

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

12 PDUs offered at the Southeast Global Trade Finance Workshop

If you still need PDUs for CDCS recertification, the Southeast Global Trade Finance Workshop offers up to 12 PDUs during the day and a half workshop on February 13-14, 2014 at the CitiBank Center in Tampa, FL.

This interactive workshop presents case studies and single-issue questions about the industry’s most challenging topics, including:

  • The new ISBP745
  • Commodity Trader LCs
  • Bank Payment Obligation
  • Panel of Experts
  • Single Issue Questions
  • And much more!

As a bonus, each attendee will receive a complimentary Uniform Customs and Practice for Documentary Credits (UCP 600) leaflet!

Register Today

Save the Date: Locations and Dates Confirmed!

Two BAFT conferences dates and locations just confirmed:

  • BAFT Global Payments Symposium will be hosted by HSBC in New York from July 10-11, 2014.
  • 2015 BAFT Europe Forum will be held in Amsterdam, Netherlands from January 19 – 21, 2015.


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Education and Training

Webinar Series

BAFT recently hosted the webinar: “Are You Ready for FATCA”, which is now posted on the BAFT 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 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 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


Vienna Initiative Sets Priorities for 2014

The Steering Committee of the Vienna 2 Initiative met on January 13, 2014 in Vienna to discuss the Initiative’s priorities for 2014. At the meeting the following five priorities for the Vienna Initiative were agreed:

  1. Promote an all-inclusive Banking Union, with a special focus on non-EU members in the Southeastern European (SEE) region.
  2. Closely monitor deleveraging and credit trends in the Central, Eastern, and Southeastern European (CESEE) region.
  3. Tackle the critical NPL problem in the CESEE countries through a coordinated multi-stakeholder effort.
  4. Increase credit enhancement and risk mitigation to support new credit in the context of still high risk perception in the CESEE region.
  5. Develop faster local funding sources in CESEE countries.

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BIS Issues Guidelines on Sound Management of Risks Related to Money Laundering and Financing of Terrorism

The Basel Committee on Banking Supervision has issued a set of guidelines to describe how banks should include risks related to money laundering and financing of terrorism within their overall risk management framework. These guidelines are consistent with the International Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation issued by the Financial Action Task Force (FATF) in 2012 and supplement their goals and objectives. The risk management guidelines published today includes cross-references to FATF standards to help banks comply with national requirements based on those standards.
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BIS Outlines Fundamental Elements to "A Sound Capital Planning Process"

The Basel Committee has published "A Sound Capital Planning Process: Fundamental Elements" to foster overall improvement in banks' capital planning practices. More recently, supervisors have begun to codify their expectations for what constitutes sound capital planning. Those planning processes enable a bank's management to make informed judgments about the appropriate amount and composition of capital needed to support the bank's business strategies across a range of potential scenarios and outcomes.
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World Bank: "Global Economy at Turning Point"

According to the World Bank’s newly-released Global Economic Prospects (GEP) report, the world economy is projected to strengthen this year, with growth picking up in developing countries and high-income economies appearing to be finally turning the corner five years after the global financial crisis. Global GDP growth is projected to firm from 2.4 percent in 2013 to 3.2 percent this year, stabilizing at 3.4 percent and 3.5 percent in 2015 and 2016[1], respectively, with much of the initial acceleration reflecting stronger growth in high-income economies.
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Australian PM Outlines G20 Agenda: Trade, Taxes, Infrastructure and Financial Regulation at WEF Forum

In an address to participants at the 44th Annual Meeting of the World Economic Forum, Prime Minister Tony Abbott outlined Australia’s priorities for its G20 presidency this year. The G20 will focus on boosting global trade and tackling protectionism, strengthening tax systems to ensure fairness, finding ways to increase infrastructure investment, and refining financial regulations.
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OECD: Russian Economy Growing But Further Reforms Needed

The OECD Economic Survey of Russia indicates that the Russian Federation is doing well on a number of fronts but that future growth is being held back by poor governance and rule of law issues. Productivity and living standards are also still well below those of the most advanced market oriented countries, and the speed of convergence since the crisis has stalled.
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Europe and Central Asia

Recovery Remains Slow in EBRD Regions

EBRD’s latest Regional Economics Prospects report notes that domestic policies will be key to longer-term outlook. The EBRD’s latest Regional Economic Prospects report said emerging economies were still suffering from capital outflows that were likely to persist in light of the expected gradual tightening of US monetary policy. The EBRD’s economists see growth in the transition region of a modest 2.7 per cent in 2014, virtually unchanged from the November forecast, and after expansion of 2.0 per cent in 2013.
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Expert Group to Advise European Commission on EU-U.S. Trade Talks

On January 27, 2014, the European Commission launched a special Advisory Group of experts representing a broad range of interests, from environmental, health, consumer and workers' interests to different business sectors to provide EU trade negotiators with high quality advice in the areas being negotiated in the Transatlantic Trade and Investment Partnership (TTIP) talks. The group's role is consultative, with the aim to examine specific challenges which may arise during the TTIP negotiations in their fields of expertise, and to provide candid feedback to EU negotiators.
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Eurostat Releases First Estimate for November 2013 Euro Area International Trade in Goods Surplus 17.1 Billion, 3.4 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.
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Status Update on 28 Member States and the Banking Union

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.
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Asia, Africa, and the Middle East

AfDB Publishes First African Guide Book on Commodity Exchanges

The African Development Bank (AfDB) believes efficient and well-regulated derivative and commodity exchanges are components of critical importance for commodity and capital market development in Africa. The AfDB published this guide book, a first of its kind, to provide a background on the state of commodity exchanges in Africa and an assessment of the policy, legal and regulatory environment in which they exist.
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Results of JETRO’s 2013 Survey on Business Conditions of Japanese-Affiliated Firms in Europe and Russia

Between October and November 2013, the Japan External Trade Organization (JETRO) conducted its latest survey on the business operations of Japanese-affiliated firms in Europe as well as Russia. The survey focused on business outlook for the next one or two years and found firms in Europe to recover, and those in Russia to expand business.
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U.S. and Latin America

FFIEC Issues Guidance on Call Report Requirement for International Remittances

On January 14, 2014, the FFIEC issued guidance on the Call Report requirement for international remittances. The new reporting requirements become effective March 31, 2014 and reporting must incorporate transactions from the effective date of the new Reg E guidelines, October 28, 2013.
Read More.

Federal Reserve Board Proposes Revisions to Payment System Risk Policy

The Federal Reserve Board on January 10, 2014 requested comment on proposed revisions to the Regulation HH risk-management standards for certain financial market utilities that have been designated as systemically important by the Financial Stability Oversight Council, including those for which the Board is the Supervisory Agency pursuant to Title VIII of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The Board also requested comment on related revisions to part I of the Federal Reserve Policy on Payment System Risk (PSR policy), which is applicable to financial market infrastructures (FMIs) more generally, including those operated by the Federal Reserve Banks. Comments on both proposals must be submitted by March 31, 2014.
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CFPB Proposes Rule to Oversee Larger Nonbank International Money Transfer Providers

On January 23, 2014 the Consumer Financial Protection Bureau (CFPB) proposed a rule that would allow it to supervise certain nonbank international money transfer providers for the first time. The proposed rule would bring new oversight to larger nonbank international money transfer providers, to make sure they are adhering to the CFPB’s new protections for consumers sending money abroad.
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MasterCard and IDB sign agreement to promote economic inclusion in Latin America and the Caribbean

MasterCard and the Inter-American Development Bank (IDB) have recently signed a keystone agreement to work together in an effort to improve economic inclusion, transparency and financial formalization through the expansion of electronic payments in Latin America and the Caribbean (LAC). The five-year public-private partnership is intended to enhance access to information and promote the transition to electronic payment services in the region, which can help reduce transaction costs and increase the efficiency of financial disbursements.
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