Global financial services powerhouse, Standard Chartered, announced it has completed a first-of-its-kind industry pilot testing of MonetaGo’s Trade Financing Validation Service to assess the risks of duplicate trade finance fraud.
The service, backed by Singapore-based fintech MonetaGo’s Secure Financing system, aims to “detect, deter and prevent duplicate financing” by screening both domestic and cross-border financial transactions.
With the help of an application programming interface (API) developed by fellow fintech SWIFT, the system is the first “natively global solution” that is able to openly and securely operate between global markets.
“Secure Financing 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,” Jesse Chenard, CEO and founder of MonetaGo, said.
“A global solution is necessary because duplicate financing fraud occurs both domestically and across borders.
“The MonetaGo solution was architected to be natively global and interoperable between markets, different financing platforms and ecosystems, to effectively mitigate the risks of trade finance frauds within and across markets.”
The solution allows trade finance providers to register document information through the API, after which the Secure Financing system “hashes” the data to create document fingerprints that can be compared with the original document to detect duplicates.
The system also validates document data through an automated verification process that compares it to trusted and highly regarded sources such as government authorities and official databases.
“The adoption of such a solution by key industry players will be key to mitigating fraud and reducing duplicate financing risk in trade finance,” Samuel Mathew, Global Head of Flow and Financial Institutions Trade at Standard Chartered, said.
“By presenting a global solution to a global problem, the combination of MonetaGo’s technology with SWIFT’s network enables cross-border comparison of transaction hashes to detect duplicates. We are excited by the potential of this solution, and hope to see broad adoption by banks and trade finance providers worldwide.”