SWIFT AND MONETAGO DELIVER MAJOR MILESTONE IN FIGHT AGAINST TRADE FINANCE FRAUD
SINGAPORE & NEW YORK, Oct 27 (Bernama-BUSINESS WIRE) -- SWIFT and MonetaGo have achieved an important milestone in the global fight against fraud and duplicate financing, with the live launch of the Trade Financing Validation Service provided by MonetaGo over the global SWIFT network.
This is the first third party service, in trade, available through the SWIFT API channel.
Following the successful completion of the pilot phase of the Trade Financing Validation Service that saw the participation of 20 institutions across 4 continents, the service can now be accessed by all the 11000+ institutions in the SWIFT network. The participating institutions included some of the world’s largest trade finance banks, representing lenders in the US, the UK, Europe, Asia and Australia.
MonetaGo’s Secure Financing system leverages best-in-class technology to prevent duplicate financing in near real-time. Digital fingerprints of the documents used in trade finance are created by using a hashing algorithm, and these fingerprints are registered in a global hash registry which acts as a secure unified repository. If the same document is registered on the system by more than one lender, the system will flag all duplicates after the first unique instance is registered.
During the pilot phase, which took place during the second and third quarters of 2022, participating institutions put data from bills of lading, invoices, purchase orders and warehouse receipts through the Secure Financing platform, observing the results of the duplicate financing checks which were delivered in almost instantaneously. Lenders were able to see, inter alia, what happens when duplicate documents are registered but not yet financed, when a duplicate document has been financed, and when financing of a duplicate document is cancelled.
With the launch of the system over SWIFT, the trade finance industry now has a natively global solution that is interoperable between markets, institutions, and platforms, enabling financiers to catch and stop cross-border fraud. The system comprehensively provides protection for all types of trade finance, ranging from documentary trade finance to financing of open account trade that includes receivables finance, payables finance, inventory finance and pre-shipment finance. This new integrated and interactive service will significantly improve safety in trade finance, mitigating the risk of duplicate financing, and ensuring confidence can be upheld globally in fraud mitigation.
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