New blockchain platform to oversee trade inventories aims to prevent fraud

ABN AMRO, Accenture, Anglo American, CMST International, Hartree Partners, ING Bank, Macquarie, Mercuria and OCBC Bank are among the parties that have so far signed up to the memorandum of understanding to launch Forcefield.

It is a digital blockchain platform that provides real-time insight into trade inventories. 

Fraud prevention

Forcefield aims to mitigate systemic industry risks and defend against the kind of damage sustained in the huge Qingdao metal warehousing fraud.

It was revealed in 2014 when business mogul Chen Jihong was found to have arranged US$3 billion of duplicate storage certificates for his mineral trading company and his company, Dezheng Resources, at the Chinese port of Qingdao.

Detecting duplicates

The new platform aims to prevent this type of fraud by incorporating a blockchain-based title and traceability concept in relation to the physical supply of goods and commodities.

It moves away from paper-based to electronic systems that should detect duplicate documents.

Real-time insight

The digital blockchain platform claims to provide real-time insight into trade inventories. 

The platform can communicate with physical trade inventories through the so-called internet of things, sensors and near field communication chips that can transfer data between two electronic devices when held a few centimetres apart.

As a result, the inventories, which are often collateral for loans, can be monitored very effectively.

Categories: Trade Based Financial crimes News

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