SINGAPORE–(BUSINESS WIRE)–Standard Chartered has successfully completed an industry first pilot test of the trade finance validation service provided by MonetaGo on SWIFT, to mitigate the risk of duplicate fraud in trade finance globally.
In order to effectively detect, deter and prevent duplicate financing, the Trade Financing Validation Service powered by the Fintech MonetaGo’s Secure Financing system is the first natively global and interoperable solution between markets.
Accessible through SWIFT’s global Application Programming Interface (API), the Trade Funding Validation Service provides controls over funding transactions to detect and thereby prevent duplicate funding fraud in domestic and cross-border markets.
Trade finance providers save certain document information by sending the information through the API. MonetaGo’s secure finance system cryptographically hashes data to create document fingerprints that can be compared to previously registered document fingerprints, to detect duplicates. All customer and transaction data is encrypted in accordance with global banking and data protection standards, and document fingerprints created by the system cannot be reverse-engineered to reveal the data that created them.
In addition to preventing duplicate financing between financiers by comparing transaction data and notifying financiers of match results, the solution also verifies document data through automated validation against trusted sources such as government authorities and logistics databases.
“Secure Finance overcomes the challenges created by information silos, private-private data sharing, and data privacy within and between financiers, through the use of privacy-preserving technologies, including confidential computing,” said Jesse Chenard, CEO and Founder of MonetaGo. “A comprehensive solution is needed because duplicate funding fraud occurs both domestically and cross-border. The MonetaGo solution has been designed to be natively global and interoperable across marketplaces, different funding platforms and ecosystems, to effectively mitigate trade finance fraud risks within and between marketplaces.
During the pilot, which took place during the second quarter of 2022, Standard Chartered tested the deduplication solution using mock data with invoices, bills of lading, purchase orders and warehouse receipts. The platform returned the results of exact matches and similar suspicious transactions in near real time.
“Through our enhanced SWIFT platform, we are harnessing the power of APIs to enable our community to quickly and easily deliver a range of innovative solutions developed by SWIFT and by partners across the financial services ecosystem,” said Harry Newman, Global Head of Wholesale Payments and Commercial Strategy, SWIFT. “MonetaGo’s Trade Finance Validation Service is a great example of how a single login to our platform gives financial institutions immediate access to a wide range of third-party services that can unlock real benefits for their end customers. ”
“Adoption of such a solution by major industry players will be key to mitigating fraud and reducing the risk of duplicate funding in trade finance,” said Samuel Mathew, Global Head of Stream Trading and Financial Institutions at Standard Chartered. “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 about the potential of this solution and hope to see wide adoption by banks and trade finance providers worldwide. »
Note to Editors
MonetaGo provides the world’s first-ever solution to combat duplicate funding fraud in trade finance, and is the world’s first provider of this technology to prevent domestic and cross-border duplicate funding.
By reducing trade finance fraud, MonetaGo’s trade activities align with global policy and regulatory mandates that enable institutions to support supply chains and expand their business volumes to new markets and to underserved areas, while maintaining privacy and enabling real-time critical decision-making. .
MonetaGo’s secure finance system has proven itself in production, being operational since March 2018 with strong transaction throughput.
MonetaGo and its secure finance solution have won numerous accolades, including Best Fintech Startup in Trade at the GTR Leaders in Trade Awards 2022, Best Trade Finance Solution at the AMTD DigFin Innovation Awards at Hong Kong Fintech Week 2021 and the most effective bank-fintech partnership. at the IBS Intelligence Global Fintech Innovation Awards 2021.
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Standard Chartered PLC is listed on the London and Hong Kong stock exchanges.
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