BAFT releases guidance on trade via maritime shipping, financial crime risk

The Bankers Association for Finance and Trade (BAFT), has announced the publication of a new whitepaper, Perspectives on Evaluating Potentially Unusual Vessel Behaviour.

The global financial services association for international transaction banking says that while banks offering trade finance products likely have a working knowledge of shipping documentation, staff may be less familiar with the details surrounding the maritime shipping industry.

This can pose challenges when shipments or transactions are flagged as unusual and compliance issues arise.

Raising awareness

The paper aims to provide bankers with a rudimentary understanding of maritime shipping and the compliance risk associated with this space.

“Our goal is to increase awareness of the risks associated with ocean-going vessels and their potential nexus to financial crimes,” says senior vice president of trade for BAFT, Scott Stevenson.

He hopes financial institutions will use the guidance to examine the inherent risk in their trade portfolios, evaluate the need for control adjustments and even innovate new risk mitigation techniques.

Production process

The paper was produced by BAFT’s trade compliance working group, a subset of the BAFT trade compliance committee, whose membership includes a wide range of banks, law firms and fintech providers.

It was produced as part of BAFT’s ongoing commitment to thought leadership, best practices and education.

BAFT members can access Perspectives on Evaluating Potentially Unusual Vessel Behaviour here.




Categories: Trade Based Financial crimes News

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