Press Releases

BAFT Announces New Head of Trade

WASHINGTON, D.C. – BAFT (Bankers Association for Finance and Trade), the leading global industry association for international transaction banking, has named Alexander Malaket as its new head of trade. Malaket will lead the association’s trade-focused policy, practices, and education initiatives, and will support its trade-related councils and committees. He succeeds Craig Weeks, who has retired from BAFT after 43 years of industry service that included senior leadership roles at global banks, insurance companies and trading companies.

Malaket will work with industry stakeholders to advance the goals of the trade and supply chain finance industry through defining best practices, formulating policy recommendations and providing education on matters related to trade and supply chain.

“Alexander is a great addition to BAFT,” said Tod Burwell, BAFT President and CEO. “He has extensive policy engagement experience and has worked with organizations across the globe to build consensus-driven solutions to industry problems. We are going to miss Craig but are fortunate to now have another individual with strong knowledge of the major issues in trade to continue the industry work and advocacy.”

Prior to joining BAFT, Malaket was the founder of Opus Advisory Services and has accumulated over 35 years of banking and consulting experience in trade, supply chain, trade financing, trade-development and sustainability. He has engaged in policy advocacy with global and local policy makers, working with top-tier global banks, ECAs and multilateral institutions in over 40 countries. He served on several boards, advisory bodies, task forces and organizations around the world. Malaket is the author of “Financing Trade and International Supply Chains”, Taylor & Francis UK, 2014, several white papers and guidance documents, and has served as a regular speaker at leading industry and policy forums. Malaket holds an Honors Degree in Economics and Political Science from the University of Toronto, the Certified Trade Finance Professional designation from ICC Academy, and Board Designation in ESG and Sustainability from Competent Boards, Toronto.

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About BAFT (Bankers Association for Finance and Trade)
BAFT is the leading global industry association for international transaction banking. Bringing together financial institutions, service providers, and the regulatory community, BAFT provides thought leadership, advocacy, education, and a platform for collaboration to promote sound financial practices that foster innovation, efficiency, and commercial growth. The association engages in a broad range of issues affecting transaction banking, including trade finance, payments, and compliance, helping members navigate a rapidly evolving global landscape. For more information about BAFT, visit baft.org, or follow BAFT on X (Formally Twitter), LinkedIn, and YouTube.

BAFT Releases Practical Sustainability Guidelines for Trade Finance and Transaction Banking

WASHINGTON, D.C. – BAFT (Bankers Association for Finance and Trade), the leading global industry association for international transaction banking, today announced the release of its latest industry white paper, Trade Finance Sustainability Guidelines for Transaction Banking. The Guidelines help banks assess sustainable trade finance transactions in a practical, proportionate and globally applicable way, creating a minimum baseline for credible decision-making in a complex and fast-evolving market.

The Guidelines address a critical gap in the sustainable finance landscape by translating broad sustainability principles into practical guidance for transaction banking — a business defined by short tenors, high transaction volumes, multi-party structures, complex supply chains and activity across multiple jurisdictions. While sustainable finance frameworks have advanced significantly since 2023, much of the focus has remained on investment banking strategies, term lending and asset-based approaches. Trade finance requires a more nuanced, operationally workable approach that reflects how transactional banking is delivered in practice.

The Guidelines are designed to complement existing standards while offering a practical alternative where those standards may not fully reach, including SMEs, developing markets and high-volume, low-value trade flows. They were drafted to provide financial institutions in markets at different stages of development with a minimum baseline to assess the sustainability of trade transactions consistently and uniformly, while preserving flexibility for local market context and existing due-diligence processes.

The key added-value features of the Guidelines are as follows:

Sustainability is broader than climate. The 17 United Nations Sustainable Development Goals (SDGs) extend beyond environmental considerations alone, and trade finance frameworks need to recognize initiatives that deliver social, economic and environmental impact across the full SDG spectrum;

Trade finance delivers on the SDGs. Trade finance contributes positively to several of the UN SDGs, particularly in developing markets. The African Development Bank’s (AfDB) Fifth Trade Finance Report (May 2026) puts unmet African demand at USD 74-92 billion for 2024;

Fit for purpose, market by market. Sustainability priorities vary across markets, and assessment approaches need to be fit for purpose in light of those market factors: assessment by the bank that knows the client, knows the local market, acting within its existing due-diligence processes and three lines of defense, with process integrity verified by international counterparties;

Complementary guidance where existing frameworks do not fully reach. The Guidelines provide governance guidance and practical alternatives for markets where existing frameworks are insufficient, including SMEs, developing markets and high-volume, low-value trade. Institutions applying the ICC Principles for Sustainable Trade Finance, the EU Taxonomy or the Equator Principles can continue to use those frameworks in addition to the BAFT Guidelines, with the BAFT Guidelines serving as a complementary minimum baseline. The clearest gap they fill is depth across the trade chain: they provide a basis for one bank to consider a sustainability designation made by another bank earlier in the chain, with responsibility ultimately remaining with the relying bank;

Safeguards built into the minimum baseline, proportionately. The Guidelines propose embedding a proportionate do-no-significant-harm screen and greenwashing controls into the baseline itself, helping ensure that broader inclusion does not mean a lower standard; and

An agenda for further work, and delivery on commitments already made. More work is needed on models that weigh social, economic and environmental trade-offs and can be implemented in local markets. The Guidelines give the industry a concrete instrument for the Sevilla Commitment’s call to strengthen trade finance for developing-country MSMEs and the Washington Declaration participants’ aim of halving the trade finance gap by 2030.

The Guidelines reflect BAFT’s ongoing commitment to advancing practical thought leadership on the future of transaction banking. They are intended to support members by providing a clear industry reference point for client engagement, internal governance, consistent transaction assessment and greenwashing risk mitigation — without creating unnecessary administrative burden or imposing a one-size-fits-all standard.

BAFT Trade Finance Sustainability Guidelines for Transaction Banking is available to BAFT members and the broader financial services community through the BAFT website.

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Cross-Border Payments Reimagined: Navigating ISO 20022, Stablecoins, and Digital Assets for the Next Era of Global Transactions

BAFT Releases New White Paper on the Future of Cross-Border Payments

Cross-Border Payments Reimagined: Navigating ISO 20022, Stablecoins, and Digital Assets for the Next Era of Global Transactions provides practical guidance for financial institutions navigating the next phase of global payments modernization.

WASHINGTON, D.C. – BAFT (Bankers Association for Finance and Trade), the leading international financial services association for transaction banking, today announced the release of its latest industry white paper, Cross-Border Payments Reimagined: Navigating ISO 20022, Stablecoins, and Digital Assets for the Next Era of Global Transactions.

As financial institutions continue to modernize payment infrastructures and respond to rapidly evolving customer expectations, the global payments ecosystem is entering a transformative period. The widespread adoption of ISO 20022 has established a new foundation for richer payment data and improved interoperability, while stablecoins, tokenized deposits, distributed ledger technologies, and other digital asset innovations are reshaping how value may be transferred across borders. Together, these developments are creating new opportunities to enhance speed, transparency, efficiency, and resilience in international payments.

Developed by BAFT’s Payments Committee in collaboration with leading transaction banking professionals from across the industry, the white paper explores how banks can strategically navigate these converging trends while maintaining the highest standards of risk management, regulatory compliance, and operational resilience.

“The future of cross-border payments will not be defined by a single technology, but by the ability to integrate modern payment standards, emerging digital assets, and trusted banking infrastructure into a seamless global ecosystem,” said Deepa Sinha, SVP, Payments & Financial Crimes, BAFT. “This white paper provides financial institutions with practical insights into the opportunities, challenges, and strategic decisions that will shape transaction banking over the coming decade.”

The publication examines several critical themes influencing the evolution of cross-border payments, including:

The strategic value and implementation lessons of ISO 20022
The emerging role of stablecoins, tokenized deposits, and digital assets in commercial banking
Opportunities to improve cross-border payment speed, transparency, and interoperability
Risk management considerations, including liquidity, cybersecurity, operational resilience, sanctions compliance, and anti-money laundering (AML) controls
Regulatory developments and global policy considerations
Practical use cases across correspondent banking, corporate treasury, trade finance, and commercial payments
The future role of banks within an increasingly interconnected digital payments ecosystem

Rather than viewing ISO 20022, stablecoins, and digital assets as competing technologies, the white paper demonstrates how these innovations can complement one another to support a more efficient, secure, and inclusive global financial system.

The report also highlights the continued importance of collaboration among banks, regulators, payment infrastructures, fintechs, and technology providers to establish interoperable standards, common governance frameworks, and trusted market practices that foster innovation while preserving financial stability.

“As the payments landscape continues to evolve, collaboration across the industry will be essential to realizing the full potential of these technologies,” said Sinha. “Our goal is to provide institutions with actionable guidance that supports innovation while reinforcing the trust, security, and resilience that underpin global transaction banking.”

The white paper reflects BAFT’s ongoing commitment to advancing thought leadership on the future of transaction banking and supporting its members as they navigate the rapidly changing payments landscape.

Cross-Border Payments Reimagined: Navigating ISO 20022, Stablecoins, and Digital Assets for the Next Era of Global Transactions is available to BAFT members and the broader financial services community through the BAFT website.

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About BAFT (Bankers Association for Finance and Trade)
BAFT is the leading global industry association for international transaction banking. Bringing together financial institutions, service providers, and the regulatory community, BAFT provides thought leadership, advocacy, education, and a platform for collaboration to promote sound financial practices that foster innovation, efficiency, and commercial growth. The association engages in a broad range of issues affecting transaction banking, including trade finance, payments, and compliance, helping members navigate a rapidly evolving global landscape. For more information about BAFT, visit baft.org, or follow BAFT on X (Formally Twitter), LinkedIn, and YouTube.

BAFT submits comments to FATF on the draft implementation Guidance for Recommendation 16 – Payment Transparency

BAFT broadly supports FATF’s draft implementation Guidance for Recommendation 16 and its goal of improving payment transparency, while emphasizing that implementation should remain risk-based, proportionate, technology-neutral and globally consistent. BAFT recommends greater clarity around terminology, alignment with ISO 20022, the role of payment market infrastructures, virtual accounts, data-storage models, and the distinction between existing KYC/CDD verification and payment-message requirements. BAFT also stresses that implementation must account for differences in payment systems and institutional capabilities, particularly in lower-capacity jurisdictions, to avoid unnecessary payment rejections, overcompliance and financial exclusion. Finally, BAFT calls for a pragmatic balance between transparency, privacy and fraud prevention, including risk-based alignment checks rather than strict exact matching and flexibility for instant-payment environments.

READ MORE HERE >

BAFT Comments and Urges Support for Trade in U.S. Capital Rules (Basel Endgame)

WASHINGTON, D.C. – BAFT (Bankers Association for Finance and Trade), the leading global industry association for international transaction banking, urged U.S. federal banking regulators to adjust proposed rules revising capital requirements for banks, noting that proper treatment of trade finance products will help strengthen the U.S. dollar and reinforce the U.S.’s position as a global leader in trade. BAFT’s actions came as part of the comment period on the banking agencies’ rulemaking proposals to modernize the regulatory capital framework for U.S. banks, sometimes referred to as the “Basel Endgame.”

BAFT applauded the improvements in the approach from the previous rulemaking proposal noting that regulators focused on improving the calibration and risk sensitivity of risk weights, but urged them to take a closer look at trade finance products noting the demonstrably low-risk nature of trade-related items.

Many of the proposed changes, while technical in nature, would change the treatment of various trade finance products, capturing many existing supply chain finance programs that support the needs of businesses. Some of the changes to the risk weights for bank exposures likewise did not consider the unique nature of trade and did not reflect the true risk of various trade products.

“We urge the regulators to ‘sharpen their pencil’ on trade – particularly given the crucial role that trade finance plays in the U.S. economy, ultimately benefiting small businesses and consumers”, said Andrew Price, BAFT VP of International Policy.

BAFT urged the banking agencies to look closely at the unique nature of trade products and consider their broader impact on the economy.

A copy of the letter can be viewed here.

BAFT will host a webinar on July 16 at 10:00 AM ET titled, 2026 Basel III Overview: Where Things Stand Now. The webinar will provide insight into how these new proposals may impact institutions, highlight key issues raised in BAFT’s response to regulators, and offer participants the opportunity to ask questions directly with industry experts.

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BAFT Releases Updated White Paper on Combatting Trade Based Money Laundering

WASHINGTON, D.C. – BAFT (Bankers Association for Finance and Trade), the leading global industry association for international transaction banking, has released a white paper titled Combatting Trade Based Money Laundering” (TBML), updating the document originally published in 2017.

The original 2017 work aimed to help address common misconceptions around fighting TBML and to recommend effective alternatives approaches. Criminals hide illicit funds by integrating them into normal commercial flows, but the sheer volume of transactions makes it nearly impossible for banks alone to detect, let alone prevent, TBML.

The objective of the current working group was to re-examine the effectiveness of efforts to combat financial crime, taking into account efforts over the past several years, while ensuring legitimate commerce, through trade continues to flow efficiently. During the reassessment, it was examined how a broader group of stakeholders in international trade have, and could continue, to better align resources in helping reduce TBML and the use of trade channels to finance terrorist activity.

“The tools at the disposal of banks have improved, which allows for materially improved TBML detection and prevention, but criminals are also using advanced tools and AI which greatly enhances the risks to the banks and society as a whole” said Tod Burwell, BAFT President and CEO. “This updated white paper recommends strategies and tactics to address this ever-evolving threat.”

To access the full white paper, visit www.baft.org

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