British multinational Standard Chartered has completed an industry-first pilot of of the Trade Financing Validation Service provided by MonetaGo over SWIFT, designed to mitigate the risks of duplicate trade finance fraud.
The Trade Financing Validation Service, powered by fintech MonetaGo’s Secure Financing system, is the first natively global solution that is interoperable between markets, detecting, deterring and preventing duplicate financing.
Accessible via SWIFT’s global Application Programming Interface (API), the solution provides checks on financing transactions to prevent duplicate financing frauds within domestic markets and cross-border.
MonetaGo’s Secure Financing system cryptographically hashes select document information to create “document fingerprints” that can be compared with already registered document fingerprints, to detect duplicates.
All customer and transaction data are encrypted in compliance with global banking and data protection standards, and the document fingerprints created by the system cannot be reverse engineered to reveal the data that created them.
The solution also verifies document data through automated validation against trusted sources such as government authorities and logistics databases.
The pilot, which took place during Q2 2022, saw Standard Chartered test the solution using mock data with invoices, bills of lading, purchase orders and warehouse receipts, returning results in near real time.
MonetaGo founder and CEO Jesse Chenard says the solution was designed to be “natively global” because duplicate financing fraud occurs both domestically and across borders.
“Secure Financing overcomes challenges created by information silos, private-private data sharing and data confidentiality within and between financiers.”
Samuel Matthew, global head of flow and financial institutions trade at Standard Chartered, says: “The adoption of such a solution by key industry players will be key to mitigating fraud and reducing duplicate financing risk in trade finance.”
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