Policy News

BAFT publishes three Article 194 Legal Opinions for the BAFT Master Participation Agreements.

• New one for the 2019 NY Law BAFT MPA
• New one for the 2018 English Law BAFT MPA
• Updated one for the 2008 English Law MPA

Legal opinions can be found under the BAFT Standard Documents section at our Library of Documents page.

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.”

On October 31, the House Financial Services Committee (HFSC) approved H.R. 4863, the United States Export Finance Agency Act of 2019, that reauthorizes the Export-Import Bank, by a vote of 30 to 27.

This bill includes strong provisions to promote certainty and stability in agency operations, such as a 10-year reauthorization, an increase in the authorization ceiling, and a quorum fix. The bill also renames EXIM as the United States Export Finance Agency.

The House Rules Committee will meet on Tuesday, November 12 to consider additional amendments filed and to set the rule for House floor consideration of HR. 4863 (Committee bill print here; Committee report here). A House floor vote on H.R. 4863 is likely to take place later this week. The list of amendments filed can be found here.

In anticipation of the House Rules Committee meeting, BAFT joined other trade associations to urge Congress to pass a long term reauthorization. The letter highlights the President’s support for a 10-year reauthorization, and signals support for both the House and the Senate bills.

You can read the letter in our Library of Documents page under Comment Letters.

BAFT joins a coalition of over two-hundred organizations and companies to call on members of the U.S. House and Senate to pass a robust and long-term reauthorization of the U.S. Export-Import Bank before its charter expires at the end of September.

BAFT and several other industry associations responded to a Request for Information regarding Potential Regulatory Changes to the Remittance Rule issued by the Consumer Financial Protection Bureau (“CFPB”).

The letter focused on the banking industry’s continued reliance on the open network of correspondent banking to transfer funds cross-border and, therefore, the Rule’s Temporary Exception permitting the use of estimates for certain disclosures.  Download the comment letter.

On June 27, 2019, the Senate Banking Committee met in an open session to conduct a hearing on the Oversight and Reauthorization of the Export-Import Bank of the United States.

The Honorable Kimberly Reed, President and Chairman of the Board of Directors of the Export-Import Bank of the United States offered testimony. BAFT has issued a Statement for the Record urging for the committee to move swiftly to pass a long-term reauthorization, prevent unnecessary disruptions to its activities by permanently resolving the quorum issue; increase EXIM’s statutory lending authority to align with market demands, and avoid unnecessary administrative roadblocks that will negatively affect the competitiveness of U.S. companies.

Read the Statement for the Record here. For additional information, please email [email protected].