Standard Chartered completes industry-first pilot of Trade Financing Validation Service to counter duplicate trade finance fraud

Standard Chartered has successfully completed an industry-first pilot testing of the Trade Financing Validation Service (TFVS) provided by MonetaGo over SWIFT, to mitigate the risks of duplicate trade finance fraud in both domestic and global transactions.

Designed to detect, deter and prevent duplicate financing, it also overcomes challenges created by information silos, private-private data sharing and data confidentiality within and between financiers through the use of privacy-preserving technologies including confidential computing.

Global solution

The TFVS powered by fintech MonetaGo’s Secure Financing system is the first natively global solution that is interoperable between markets.

“A global solution is necessary because duplicate financing fraud occurs both domestically and across borders,” says founder and CEO of MonetaGo, Jess Chenard.

Accessible via SWIFT’s global Application Programming Interface (API), it provides checks on financing transactions to detect and thereby prevent duplicate financing frauds within domestic markets and cross-border.

How it works

Trade finance providers register select document information by sending the information via API. MonetaGo’s Secure Financing system cryptographically hashes the data to create document fingerprints that can be compared with already registered document fingerprints to detect duplicates.

All customer and transaction data are encrypted in compliance with global banking and data protection standards and the document fingerprints created by the system cannot be reverse engineered to reveal the data that created them.

Additional benefits

As well as preventing duplicate financing between financiers by comparing transaction data and informing financiers of match results, the solution also verifies document data through automated validation against trusted sources such as government authorities and logistics databases.

The pilot earlier this year returned results in near real time using mock data with invoices, bills of lading, purchase orders and warehouse receipts.

Categories: Trade Based Financial crimes News

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