BAFT News and Press Releases

 

BAFT Ramps Up Anti-Money Laundering Efforts, Supports Know Your Customer Initiatives

by Patrick Devilbiss | Apr 15, 2014
BAFT, the international financial services association, announced today a new Anti-Money Laundering and Know Your Customer Trade Finance Sound Practices working group.

BAFT Ramps Up Anti-Money Laundering Efforts, Supports Know Your Customer Initiatives


WASHINGTON — BAFT, the international financial services association, announced today a new Anti-Money Laundering and Know Your Customer Trade Finance Sound Practices working group.  BAFT formed the group to meet the needs of the transaction banking industry’s heightened focus on maintaining compliance with increasing anti-money laundering, combating the financing of terrorism, and know-your-customer regulatory expectations.

The BAFT working group will review “red flags” identified by bodies in different regions as well as common challenges and determine banks’ best practices to handle these issues.  The group will consolidate sound practices into a document to assist other trade practitioners. A similar document was developed in 2008, but risks, regulations and practices have changed significantly since then.

“Addressing the challenges of financial crime while balancing the need for trade finance and payment services is one of the most pressing issues for the transaction banking industry,” said Tod Burwell, BAFT president and CEO.  “Increased regulatory requirements, significant fines for non-compliance, and shifting trade and payment flows have made it incredibly difficult and costly for banks to interdict 100 percent of the non-compliant transactions from the millions of transactions that support everyday commercial activity.”

BAFT also supports several industry initiatives to develop a Know Your Customer solution to help banks more efficiently manage the cost of executing KYC practices. SWIFT, KYC Exchange Net and Accuity will present updates on their particular solutions at the BAFT conference in La Jolla, Calif. on May 7.

“The industry spends hundreds of millions to fight financial crime,” Burwell said. “Shared solutions can both lower cost and improve consistency, but banks need to agree on best practice requirements.”

BAFT, the leading global financial services association for international transaction banking, helps bridge solutions across financial institutions, service providers and the regulatory community that promote sound financial practices enabling innovation, efficiency, and commercial growth. BAFT engages on a wide range of topics affecting transaction banking, including trade finance, payments, and compliance. The association website is www.baft.org.

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