fraud

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

BAFT, an international financial services association headquartered in Washington, D.C., is the leading global forum for transaction banking, bringing together banks, financial institutions, technology providers, and industry stakeholders to drive innovation, collaboration, and best practices across trade finance, payments, supply chain finance, financial crime compliance, and transaction banking. Through advocacy, education, and thought leadership, BAFT supports the development of a safe, efficient, and resilient global financial system.

ORLANDO, FL – BAFT (Bankers Association for Finance and Trade) today announced the release of its latest white paper, “Best Practices in Mitigating Fraud in Transaction Banking,” offering financial institutions practical, industry-driven guidance to address the rapidly evolving fraud landscape across payments, trade finance, and client onboarding. 
 
As transaction banking becomes increasingly digital, real-time, and interconnected, fraud schemes are growing in sophistication and scale. The paper explores how emerging trends, including instant payments, digital onboarding, and AI-enabled social engineering, are reshaping risk, while highlighting actionable strategies to strengthen prevention, detection, and response capabilities. 
 
Developed by BAFT’s Working Group on Fraud Mitigation, the white paper provides a comprehensive framework for financial institutions to manage fraud risk across the full lifecycle. It also underscores the growing convergence between fraud, anti-money laundering (AML), and sanctions risks, and the need for integrated, cross-functional approaches to risk management.

“Fraud is no longer a siloed risk—it is increasingly interconnected with broader financial crime threats and amplified by technological advancements,” said Deepa Sinha, SVP for Payments and Financial Crimes. “This paper provides practical guidance to help banks strengthen resilience while maintaining efficiency and client trust in a rapidly changing environment.” 
 
The white paper also emphasizes the importance of collaboration and information sharing, including public-private partnerships and cross-border coordination, as essential tools in combating fraud at scale.

Key highlights of the white paper include: 

• An overview of evolving fraud typologies, including authorized push payment (APP) fraud, account takeover, synthetic identity fraud, mule networks, and trade document fraud 

• Analysis of emerging risk drivers such as instant payments, digital onboarding, and AI-driven fraud techniques 

• A practical control framework covering prevention, real-time detection, investigation, and response 

• Insights into the convergence of fraud, AML, and sanctions risks 

• Best practices for collaboration, data sharing, and cross-border coordination 

• Real-world case studies and key fraud indicators, particularly in trade finance 

The publication is part of BAFT’s ongoing efforts to support the global transaction banking community in navigating emerging risks and advancing safe, efficient, and resilient financial systems.

The full white paper is available here: Download Paper HERE 

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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.