BAFT and International Chamber of Commerce Banking Commission Announce Cooperation Agreement
The ICC Banking Commission, the leading standard-setter for the trade finance industry, and BAFT, the international financial services association have agreed a cooperation agreement to improve consumer services and strengthen the global voice of the industry.
ne of the main objectives of the agreement is to streamline certain workflows across both organizations and leverage each other’s strengths. Initial areas of cooperation will include: (1) Establishing global supply chain finance definitions; (2) Adopting standardized industry documentation, including the BAFT Master Loan Agreement and the ICC Rules for Bank Payment Obligations; (3) Increasing awareness of industry initiatives, such as Sustainable Trade Finance; and (4) Coordinating industry surveys.
Through this unique partnership, ICC and BAFT will collaborate on facilitating domestic and cross-border trade by harmonizing definitions and business practice. “BAFT and ICC are quite complementary to each other in serving member interests in trade finance,” said Tod Burwell, BAFT President and Chief Executive Officer. “For example, ICC has developed standard transaction rules and BAFT has developed standard frameworks for customer agreements. Also, BAFT routinely referenced the ICC Trade Register as part of its global policy dialogue to influence change in the treatment of trade finance under Basel III.”
ICC Banking Commission Chair Tan Kah Chye said: “This cooperation agreement is extremely important as it leverages the unique strengths of both organizations for the collective benefits of our members. With this, we have responded to the voices of the industry.” ICC Secretary General Jean-Guy Carrier added: “Enhanced cooperation between ICC and BAFT will further the ICC mission to promote international trade and investment while benefitting banking industry professionals through new initiatives and services designed to help them remain reactive in an increasingly integrated and fast-paced global economy.”
The BAFT Global Trade Industry Council and ICC Banking Commission Advisory Board will also jointly discuss other opportunities for collaboration on trade finance industry needs. Each organization will continue to pursue core initiatives, and will coordinate efforts where there is common interest in order to achieve a better outcome for the industry.