An update of The Wolfsberg Group, ICC and BAFT Trade Finance Principles publication released this week looks at the financing of international trade for global and regional financial institutions in a heightened regulatory environment.
The publication, updated for the first time since 2011, reflects growing regulatory expectations and the more stringent application of existing financial regulations.
The collaborative effort by The Wolfsberg Group, The Banking Commission of the International Chamber of Commerce (ICC) and BAFT is designed to standardize the practice of financial crimes compliance for trade transactions.
- “When the leading industry associations work together, a stronger and universally acceptable standard of behaviours can be developed and adopted by all of the global trade finance community regardless of size,” said Tod Burwell, president and CEO of BAFT, a global financial services association for international transaction banking.
- “These principles take into account the difference in development, cultures and size of all banks involved in trade finance and are not specific to any one country.”
The updated document will serve more financial institutions than past versions, said Tracy Paradise, executive secretary of the Wolfsberg Group, an association of 13 global banks. Paradise said.
- “This publication is particularly timely in light of the recent focus on international trade flows and correspondent banking,”
- “This effort demonstrates the impact that such joint work can have on the industry and will no doubt drive further efforts on other issues in the future.”
The three organizations and their members worked more than two years for the publication of the document.
- “In keeping with the traditional work of the ICC Banking Commission, this guidance on sound financial crimes risk management for the traditional trade products follows in the steps of the UCP, URC etc. in setting standards by which banks should conduct their trade business and
- to provide a sound basis for the continuation of the finance of international trade by banks,” Oliver Paul, head of policy of the ICC, said.
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