BAFT Releases Guidance for Sanctions Compliance

by User Not Found | Feb 10, 2017
BAFT, an international financial services association, announced today the publication of its Guiding Principles for Sanctions Issues Related to Shipping and Financial Products.

                WASHINGTON — BAFT, an international financial services association, announced today the publication of its Guiding Principles for Sanctions Issues Related to Shipping and Financial Products. The guidance paper, developed by a joint working group of members from BAFT and The Clearing House, is designed to provide greater clarity regarding sanctions requirements for financial transactions related to the shipment of goods.

“Economic sanctions obligations for financial institutions aren’t always black and white,” said Stacey Facter, senior vice president of trade products at BAFT. “The purpose of this paper is to provide further clarity as to which types of transactions may be prohibited and minimize interpretive deviations for those on the front lines of sanctions compliance.” 

The guidance paper is intended to address issues arising from sanctions regulations administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury. The sanctions prohibit direct transactions with sanctioned parties and direct and indirect exports and re-exports to sanctioned territories. The guidance paper addresses more complicated scenarios to help banks with their compliance efforts.

The working group was comprised of sanctions experts from the world’s leading U.S. and international financial institutions.  

            To view the paper, visit baft.org.

           

            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.