BAFT Announces Ambassadors of the Year for 2020

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Officially announced at the 2020 Virtual International Convention and for the third year running, BAFT is honored to recognize individuals for their invaluable assistance provided to the association throughout the past year.

In an effort to publicly recognize individuals from member organizations who have volunteered their time and worked diligently with the association throughout the previous calendar year, BAFT annually awards select members with the BAFT Ambassador of the Year Award.

Ambassadors of the Year, are individuals nominated by BAFT staff. Potential recipients are chosen by the BAFT Ambassador of the Year Committee following nomination submissions from BAFT staff. Awardees are then selected from the list of potential nominees following a weighted voting process.

Officially announced at BAFT’s 2020 Virtual International Convention on November 16, BAFT is honored to recognize the following individuals for their invaluable assistance provided to the association throughout the past year and for helping to continually drive the mission of BAFT forward.

  • Daniel Pinho, senior vice president and assistant group manager, trade finance, PNC
  • Kristine Siebel, vice president & standby letter of credit officer, Societe Generale
  • John Taylor, international advisor, Centre for Commercial Law Studies, Queen Mary University of London

Once again, thank you for your hard work and going above and beyond in the past year to support BAFT and its overall objectives. Recipients’ awards will be mailed to them in lieu of an official awardee ceremony due to the pandemic.

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New report examines the implications of transitioning away from LIBOR to SOFR for the trade finance industry.

WASHINGTON — BAFT, the leading global financial services association for international transaction banking, today announced the publication of SOFR: Trade Finance Priorities to inform the policy community and the industry on the impact of a possible transition to the Secured Overnight Financing Rate (SOFR) from the London Inter-Bank Offered Rate (LIBOR).

Trade is essential to GDP growth and supports commercial flows and supply chain sustainability globally. In 2019, global trade flows totaled $18.1 trillion, with an estimated $9.77 trillion of that sum comprised of bank intermediated trade. USD LIBOR is the most widely used benchmark across the trade finance industry globally. As the market prepares to transition away from LIBOR to Risk Free Rates (RFRs) by the end of 2021, BAFT member institutions have been working steadily to prepare for the change.

“This report examines the impact of the transition from LIBOR on the trade finance business and concludes there is an imperative for a forward-looking term rate to ensure the uninterrupted provision of financing to support cross border trade,” said Diana Rodriguez, vice president, international policy at BAFT. “We were pleased to see the Alternative Reference Rate Committee’s (ARRC) September publication of a Request for Proposals for a Term Rate administrator, and we welcomed subsequent dialogue with the Federal Reserve Board on the findings of this paper. We look forward to continued progress toward the publication of a forward-looking term SOFR in the first half of 2021 for use by the Trade Finance market.”

The white paper is the culmination of several months of analysis by the BAFT IBOR Transition Working Group’s Suitability of Rates subgroup, as well as input from a global BAFT member survey. The working group also considered findings from the BAFT Future Leaders’ Group on IBOR Transition and incorporated elements of their work in this paper. Though members have made progress in identifying areas where overnight SOFR could be used, BAFT believes most transactions require a forward-looking rate to provide certainty to trade buyers and sellers.

“As experienced trade finance professionals, the working group members have provided market views stressing the critical importance of a forward-looking term rate from a trade finance practitioners perspective,” stated Priyamvada Singh, managing director & regional head, product, propositions & structuring, global trade and receivables finance, HSBC Bank USA. “Considering trade finance products are globally used to finance a significant volume of merchandise trade, and that users of trade finance products globally span a wide range of companies, especially a majority of Small and Medium companies (SMEs), the members recognize the need for industry consensus for a workable solution that can provide cost certainty and pricing transparency for robust adoption.”

“Establishment of a SOFR term rate and clarity on the timing of its launch are critical for the trade market to finalize conventions and support the transition away from LIBOR,” said Doug Laurie, director, global programme lead- LIBOR transition loans at Barclays. “Getting the SOFR transition right will have an impact on banks and their customers globally given the dominance of the U.S. dollar for trade transactions.”

Rodriguez of BAFT and Laurie of Barclays will host a workshop on the implications of the transition to SOFR for trade finance on Friday, Nov. 20, 2020 at 8:00 a.m. ET during BAFT’s International Convention.

To read the full white paper, visit our Library of Documents under the BAFT Guidance and Industry Practice section or click here.

About BAFT
BAFT is the leading international financial services association whose membership includes large global and regional banks, service providers, and fintech companies headquartered around the world. BAFT provides advocacy, thought leadership, education, and a global forum for its members in transaction banking, including international trade finance and payments. For nearly a century, BAFT has expanded markets, shaped policy, developed business solutions, and preserved the safety and soundness of the global financial system.

BAFT Media Contact:
Blair Bernstein
[email protected]
+ 1 (202) 663-5468

Follow us on Twitter: @BAFT
Follow us on LinkedIn: BAFT

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On November 16, BAFT, along with BPI and others, submitted a letter to FinCEN supporting regulatory action that would permit entities to enhance the effectiveness of their AML programs.

BAFT along with seven other trade associations submitted a response to an advance notice of proposed rulemaking issued by the Financial Crimes Enforcement Network (“FinCEN”) related to AML program effectiveness.

The associations communicated their view that regulatory action is necessary to enable the allocation of resources to enhance the effectiveness and efficiency of AML programs, while remaining compliant with the legal requirements of the Bank Secrecy Act (“BSA”). They offered several high-level recommendations to FinCEN as it moves forward with the rulemaking process.

To read the joint letter and learn more about the associations’ recommendations, visit our Library of Documents under the Comment Letters section or click here.

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BAFT and CGI recently conducted a survey of more than 200 BAFT members in an effort to better understand the current state of technological advancements in trade, and how the pandemic has accelerated their importance and need.

WASHINGTON – More than 70 percent of bank respondents reported a culture of increased innovation in trade finance during the last year, according to a new survey conducted by BAFT, the leading global financial services association for international transaction banking, and CGI, a multinational, independent IT and business consulting services firm. In fact, nearly 85 percent of survey participants reported increased digitization efforts at their financial institution in the wake of the COVID-19 pandemic.

BAFT and CGI conducted its survey of more than 200 BAFT members in the summer of 2020 in an effort to better understand the current state of technological advancements in trade, and how the pandemic has accelerated their importance and need.

The survey found that banks have been driving new digitization efforts, forming consortia with financial and corporate partners, searching for compliance solutions, and re-examining existing processes to create efficient operations.

“Over the last 10 years of my career, we have been discussing automating trade finance processes,” said Stacey Facter, senior vice president, trade products, BAFT. “COVID-19 has underscored the need to move away from paper and seemingly expedited the transition. BAFT works to identify barriers to innovation and address them head on to continue driving the global trade finance industry to embrace digitalization.”

Digitization initiatives are underpinned by technologies such as blockchain/DLT platforms, intelligent process automation, artificial intelligence, machine learning, natural language processing, and robotic process automation.

“The BAFT and CGI survey reveals that while banks continue to face legal, regulatory, and compliance challenges, the industry is making advances with newer technologies that support integrated platforms and provide seamless transactional workflows,” said Patrick DeVilbiss, director of consulting, trade and supply chain solutions, CGI.

The full survey and results will be presented at BAFT’s 2020 Virtual International Convention on Thursday, November 19 at 10:35 ET / 15:35 GMT during the ‘Trade Technology: Today’s Focuses, Tomorrow’s Promises’ session. This session will discuss the results of the survey and provide insight on the current state of technological advancement in trade featuring Normand D’Arcy, senior manager, international services, National Bank of Canada; Patrick DeVilbiss, director of consulting, trade and supply chain solutions, CGI; Stacey Facter, senior vice president, trade products, BAFT; and Marc Smith, CEO & founder, Conpend.

To view the survey’s results including respondents top technology investments over the next five years, top challenges in meeting shifting business needs, culture of innovation, fintech collaboration, and more, visit our Library of Documents under the Surveys section or click here.

About BAFT
BAFT is the leading international financial services association whose membership includes large global and regional banks, service providers, and fintech companies headquartered around the world. BAFT provides advocacy, thought leadership, education, and a global forum for its members in transaction banking, including international trade finance and payments. For nearly a century, BAFT has expanded markets, shaped policy, developed business solutions, and preserved the safety and soundness of the global financial system.

About CGI
Founded in 1976, CGI is among the largest independent IT and business consulting services firms in the world. With 76,000 consultants and other professionals across the globe, CGI delivers an end-to-end portfolio of capabilities, from strategic IT and business consulting to systems integration, managed IT and business process services and intellectual property solutions. CGI works with clients through a local relationship model complemented by a global delivery network that helps clients digitally transform their organizations and accelerate results. CGI Fiscal 2020 reported revenue is C$12.16 billion and CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB). Learn more at cgi.com.

BAFT Media Contact:
Blair Bernstein
[email protected]
+ 1 (202) 663-5468

Follow us on Twitter: @BAFT
Follow us on LinkedIn: BAFT

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Payables Finance Technique – Market Practices in Supply Chain Finance is the second in a series of guidance documents set to further encourage industry-wide adoption of uniform terms and techniques.

The Global Supply Chain Finance Forum (GSCFF) – an initiative comprising the International Chamber of Commerce (ICC) Finance for Development Banking Commission, BAFT (The Bankers Association for Finance and Trade), the Euro Banking Association (EBA), FCI, and the International Trade and Forfaiting Association (ITFA) – has released a new guidance document on payables finance, to aid financial institutions, accounting firms, rating agencies and regulators in gaining clarity and consistency on the various terms and techniques.

While uptake and feedback on the 2016 Standard Definitions for Techniques of Supply Chain Finance has been positive, much work is still required to further align terminology across the complex ecosystem of stakeholders involved in international supply chains.

As part of this drive for clarity, the second Market Practices in Supply Chain Finance publication focuses on payables finance – a technique and form of receivables purchase, flexibly applied, in which sellers of goods and services sell individual or multiple receivables (represented by outstanding invoices) to a finance provider at a discount. In turn, the guidance document takes a wider look at this important technique and provides a comprehensive overview on how payables finance can be used in practice.

“When all parties use similar techniques and terminology, it makes for a streamlined and efficient process,” said Christian Hausherr, European Product Head of Supply Chain Finance at Deutsche Bank and Chair of the GSCFF. “Our hope is that this report will lead to an industry-wide, uniform adoption of the payables finance technique.”

The publication represents a go-to resource that finance providers can refer to for guidance on common market practices in risk management, documentation and operational handling for payables finance transactions.

To read the full guidance document, visit our Library of Documents under the Industry Definitions and Guidelines section or click here.

About the Global Supply Chain Finance Forum:
The Global Supply Chain Finance Forum was established in January 2014, as an initiative of these industry associations to address what has been recognized as a need to develop, publish and champion a set of commonly agreed standard market definitions for Supply Chain Finance and for SCF-related techniques.

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On November 2 , BAFT announced the formation of its new Global Payments Industry Council (GPIC).

WASHINGTON — BAFT, the leading international transaction banking association, announced today the formation of its Global Payments Industry Council (GPIC). The GPIC’s primary purpose is to set BAFT’s strategic agenda with respect to global payments and to ensure proper alignment of BAFT’s payments committees and working groups.

The council will be led by Chair David Kretz, head of GTS global strategy and payments for Bank of America and Vice-Chair Jean-François Mazure, head of cash clearing services for Societe Generale.

“The GPIC serves as the cornerstone of BAFT’s new payments strategy, which the Board approved earlier this year,” said Samantha Pelosi, senior vice president for payments and innovation, BAFT. “We look forward to the council’s direction and guidance in this increasingly important area of transaction banking.”

The GPIC’s top three priorities for the next two years include interfacing with key regulators around the globe about the information traveling with funds for transparent payments, ensuring that the same standards are applied to all entities wishing to participate in real-time payments systems, and developing best practices for those real-time payments participants, such as origination, on-boarding an entity to platform, expediting the resolution of exceptions in processing, and effectively leveraging the new technology.

The GPIC is made up of 20 bankers comprised of executives leading the cash management, payments and liquidity business lines of BAFT member organizations. The GPIC’s geographic representation includes Africa, Asia-Pacific, Europe, MENA, and North America.

About the Global Payments Industry Council (GPIC)
The GPIC consists of global heads of payments and cash management from member banks including ANZ, Bank of America, Barclays, BNP Paribas, BNY Mellon, Citigroup, Deutsche Bank, First Abu Dhabi Bank, HSBC, J.P. Morgan, MUFG, Nordea, Santander, Societe Generale, Standard Bank, Standard Chartered, TD Bank, UBS, and Wells Fargo.

About BAFT
BAFT is the leading international financial services association whose membership includes large global and regional banks, service providers, and fintech companies headquartered around the world. BAFT provides advocacy, thought leadership, education, and a global forum for its members in transaction banking, including international trade finance and payments. For nearly a century, BAFT has expanded markets, shaped policy, developed business solutions, and preserved the safety and soundness of the global financial system.

BAFT Media Contact:
Blair Bernstein
[email protected]
+ 1 (202) 663-5468

Follow us on Twitter: @BAFT
Follow us on LinkedIn: BAFT