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Currently, banks in Singapore reply on due diligence on their customers and transaction checks of the underlying trade flows to make trade financing available to their clients. However, banks may receive documents which are prone to forgery, and they are often unable to ascertain if a particular trade has been taken to multiple banks for financing.
ABS（The Association of Banks in Singapore） has launched the Trade Finance Registry (TFR), a central repository for recording trade finance transactions in Singapore. Under the TFR, participating banks can register new trade financing transactions, and receive real-time notifications for further action if instances of duplication are detected.
The registry will only receive encrypted information on corporate customers, ensuring that banks’ underlying data remains confidential while enabling the identification of duplicate trades.
The TFR will also enhance transparency in trade finance transactions by facilitating the validation of trade authenticity through API connections to the SGTraDex (Singapore Trade Data Exchange), a public digital platform launched in June 2022 that shares data among supply chain ecosystem partners.
Key trade financing banks, including OCBC, DBS, Standard Chartered, Citibank, BNP Paribas, backed the TFR initiative, with UOB chairing the project.
Alongside the project leads, other banks involved include the Bank of China, Sumitomo Mitsui, Deutsche Bank, MUFG Bank, CIMB, ING Bank and State Bank of India, among others.
Whatsapp : (852) 6499 4686 Phone : (852) 2186 6936 Email : info@intershores.hk
Disclaimer: Whilst reasonable care has been taken in provision of information above, it does not constitute legal or other professional advice. INTERSHORES does not accept any responsibility, legal or otherwise, for any error omission and accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, readers are advised to take appropriate professional advice before committing themselves to any involvement in jurisdictions, vehicles or practice.
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