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BAFT Launches International Suspicious Activity Guidelines

by User Not Found | Apr 24, 2015
Document addresses the challenge of financial crime while balancing the need for trade finance services <a href="">Click here to view the full document</a>

​WASHINGTON — BAFT, an international financial services association, announced today its Guidance for Identifying Potentially Suspicious Activity in Letters of Credit and Documentary Collections. The guidance, developed by BAFT’s Best Practices Anti-Money Laundering Know Your Customer working group, is designed to assist the international banking industry when combatting money laundering and financial crime.   

The Best Practices AML KYC working group consists of product and compliance practitioners from 16 financial institutions and industry suppliers from the U.S., Canada, Asia and Europe. As announced last April 2014, the BAFT Global Trade Industry Council made up of senior leaders in global trade finance, formed the group to meet the needs of the transaction banking industry, and this document is the first output from the group.

The BAFT working group reviewed the red flags and risk indicators identified by various industry bodies in different  regions globally including the Federal Financial Institutions Examination Council , Financial Action Task Force, the Wolfsberg Group and the Financial Conduct Authority to provide clarity for international banks  to consider when implementing trade compliance policies.

BAFT combined the key points from the above groups into 16 red flags to raise banks’ awareness of what to look for to assess suspicious activity in trade transactions.

“One of the challenges banks face with implementing global compliance policies is trying to interpret guidance from multiple industry bodies,” said Tod Burwell, BAFT president and CEO. “This document aims to simplify guidance from a variety of regulatory and standard setting authorities in a way that facilitates more effective policies and procedures.”

Click here to view the full document

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