SC Completes Trade Finance Validation Service Pilot

Standard Chartered has completed a pilot test of the trade finance validation service provided by MonetaGo via SWIFT, to mitigate the risk of duplicate fraud in trade finance globally.

Aimed at effectively detecting, deterring and preventing duplicate funding, the solution powered by fintech MonetaGo’s secure funding system is a native global solution that would be interoperable across markets. The Trade Finance Validation Service is accessible through SWIFT’s global Application Programming Interface (API). The solution provides controls over funding transactions to detect and prevent duplicate funding fraud in domestic and cross-border markets, as stated in the official press release.

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 fingerprints of documents created by the system cannot be reverse-engineered to reveal the data that created them, according to the statement. Press.

In addition, the solution also verifies document data through automated validation against trusted sources such as government authorities and logistics databases.

What are MonetaGo, SWIFT and Standard Chartered saying?

The CEO and Founder of MonetaGo said that “Secure Finance overcomes the challenges created by information silos, private-private data sharing and data privacy within and between financiers, through the use of technologies preserving privacy, including confidential computing. A global 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.

The pilot of the solution took place during the second quarter of 2022. Next, Standard Chartered tested the deduplication solution using fictitious data with invoices, bills of lading, purchase orders and warehouse receipts. The platform reportedly returns results for exact matches and similar suspicious transactions in near real time. Through its platform, SWIFT leverages APIs to enable its community to offer a range of solutions developed by SWIFT and financial services ecosystem partners, according to global head of wholesale payments and business strategy at SWIFT. He argued that MonetaGo’s trade finance validation service is an example of how a single sign-on to SWIFT’s platform enables financial institutions to access a range of third-party services that can unlock real benefits for their end customers.

Standard Chartered’s global head of trade flows and financial institutions says the adoption of such a solution by major industry players will help mitigate fraud and reduce the risk of duplicate funding in trade finance . Combining MonetaGo’s technology with SWIFT’s network would present a global solution to a global problem, as the solution allows cross-border comparison of transaction hashes to detect duplicates, the official press release concludes.

In recent news, Standard Chartered has partnered with FairPrice Group to launch Trust Bank in Indonesia, while a partnership with Bukalapak has resulted in BukaTabungan.

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