Policy News

BAFT Jointly Publishes Paper on the SCF Payables Finance Technique

On February 13, 2020, the Global Supply Chain Finance Forum (GSCFF) made up of the major global associations representing the trade finance market including BAFT, FCI, the ICC, the ITFA and the EBA, published a Payables Finance white paper to allay concerns and clarify what Payables Finance is and how it works.

BAFT, a member of the Global Supply Chain Finance Forum (GSCFF), jointly published with its forum partners the EBA, FCI, the ICC and the ITFA the white paper titled Payables finance-how it helps global supply chains. The white paper is a factsheet from the GSCFF that explains the SCF Payables Finance technique-how it works and why, and when appropriately used, how it benefits supply chain buyers and suppliers.

To view the white paper, visit our Library of Documents under the White Papers section.

BAFT Responds to CFPB’s Proposed Amendment of the Remittance Rule

On January 21, 2020, BAFT and other industry associations responded to the Consumer Financial Protection Bureau’s Notice of Proposed Rulemaking that would amend the Remittance Rule.

BAFT jointly with The Clearing House, the Consumer Bankers Association, and the American Bankers Association, submitted a comment letter to the US Consumer Financial Protection Bureau (CFPB) supporting it proposed amendments to the remittance rule. The amendments would create two new exceptions—one for exchange rates and one for fees—allowing banks to continue to rely on estimates when providing disclosures to customers. The CFPB proposed the amendments in response to concerns voiced earlier by the banking associations regarding the expiration in July 2020 of the rule’s existing temporary exception.  Also in the joint comment letter, BAFT encouraged the CFPB to make greater use of the rule’s existing permanent country exception, which allows estimation of disclosures for remittance transfers to certain countries where exact amounts can be particularly difficult to determine.  These changes would permit banks to continue to serve the needs of their customers who wish to initiate remittance transfers directly from their depository accounts.

To view the joint letter, visit our Library of Documents under the Comment Letters section.

BAFT Responds to EC’s Basel III Consultation

On January 3, 2020, BAFT responded to the European Commission’s Public Consultation on Implementing the Final Basel III Reforms in the EU.

As the European Union begins the process of developing a Commission proposal to implement the final Basel III reforms ahead of the 2020 deadline, BAFT encouraged the Commission to take into consideration the impact on trade activities and consider utilizing discretion when implementing the Basel III framework. The response to the consultation follows a meeting BAFT held on October 31, 2019 with the European Commission to preview BAFT’s trade finance priorities for the implementation of the final Basel III package.

BAFT’s Europe Council’s Basel working group will remain engaged in the coming months. For further information, please contact Diana Rodriguez, Senior Director of International Policy, at [email protected].

To view the BAFT response visit our Library of Documents under the Comment Letters section.

BAFT Applauds Passage of Long-Term Reauthorization of the U.S. Export-Import Bank

We commend congressional leaders for including EXIM reauthorization in the year-end government funding legislation. Bipartisan passage of this seven-year reauthorization, the longest ever in EXIM history, heralds a new era for the agency.

WASHINGTON — BAFT, the leading global trade association for transaction banking, applauds Congress for passing government funding legislation that includes a seven-year reauthorization of the Export-Import Bank (EXIM). BAFT President and CEO, Tod Burwell issued the following statement:

“We commend congressional leaders for including EXIM reauthorization in the year-end government funding legislation. Bipartisan passage of this seven-year reauthorization, the longest ever in EXIM history, heralds a new era for the agency. Since EXIM was last reauthorized, foreign export credit agencies have continued to grow and expand the scope of their work. Passing a long-term reauthorization, which includes alternative procedures during a Board quorum lapse, provides market certainty, supports U.S. jobs, and ensures that American companies can compete globally. Our member banks work with EXIM to fill required financing gaps, and ensure the availability and affordability of trade finance for businesses of all sizes. We look forward to partnering with EXIM to deliver trade finance products that are crucial to international commerce and the growth of the U.S. economy.”

Media should contact Blair Bernstein at [email protected] for any inquiries.

BAFT Welcomes Agreement on USMCA

On December 12, BAFT and its members across North America welcome agreement on the USMCA and support its swift passage and implementation.

WASHINGTON — BAFT, the leading global trade association for transaction banking, today announced its support of the bipartisan proposal to move forward on the United States-Mexico-Canada Agreement (USMCA). BAFT President and CEO Tod Burwell issued the following statement:

“BAFT and its members across North America welcome agreement on the USMCA and support its swift passage and implementation. International trade remains an important engine of economic growth, and banks play a vital role in supporting cross-border commerce. Implementation of USMCA will bring greater certainty to importers and exporters of all sizes throughout North America, which will facilitate their ability to invest for future growth and provide goods and services more efficiently. In addition to market access and most favored nation provisions, USMCA’s Financial Services chapter contains vital updates that are important to our members engaged in cross-border trade in services, including provisions that guarantee the free flow of data and prohibition of forced data localization.”