Wednesday, February 8, 2023
- Advertisment -
HomeNewsBusinessSwift and MonetaGo combat fraud in trade finance

Swift and MonetaGo combat fraud in trade finance

A trade finance validation service has been introduced by Swift and partner MonetaGo for the messaging network’s 11,000+ users.

The system will identify any duplicate entries if the same document is registered on the system by more than one lender after the first distinct instance is registered.

The Secure Financing technology from MonetaGo promises to stop duplicate financing in almost real-time. Using a hashing algorithm, trade finance papers are given digital fingerprints that are registered in a global hash registry that serves as a safe centralised repository.

The technology is now being made available to banks throughout the Swift network through its API channel after a pilot involving 20 institutions from four continents.

The lenders could examine, for example, what happened when duplicate papers were registered but not yet financed, when a duplicate document had already been financed, and when financing of a duplicate document was cancelled.

Participating institutions used the Secure Financing platform to process data from bills of lading, invoices, purchase orders, and warehouse receipts during the test phase, watching the results of the duplicate financing checks that were supplied nearly instantly.

According to Yoshisuke Maeda, GM of Mizuho Bank’s global transaction banking division: “Trade finance fraud has impeded the much-needed flow of capital to firms on the road to recovery for far too long by reducing the amount of funding accessible to legal borrowers.

Swift and MonetaGo’s ubiquitous, standardised utility presents a significant chance to buck the recent trend of banks reducing their trade finance activities.

News Summary:

  • Swift and MonetaGo combat fraud in trade finance
  • Check all news and articles from the latest Business news updates.
Patrick Huston
Patrick Huston
As a senior editor, Patrick is a professional who is in charge of putting out business news. As a senior editor, Patrick is likely to be in charge of the duties of junior editors and writers, make sure the content is correct and high-quality, and work with other departments to make sure the business news is published on time. Patrick knows a lot about business and the latest market trends. He uses this knowledge to choose and edit stories that are both interesting and useful to readers. He also works with reporters and analysts to come up with insightful pieces that help readers keep up with the latest business news. Patrick is a very important part of keeping the public informed and interested in important business issues. He is passionate about journalism and strives for excellence.
RELATED ARTICLES

Latest

- Advertisment -