Swift launches double financing fraud solution pilot with MonetaGo

Swift is trialling a new trade finance fraud prevention solution that will enable financial institutions to check for duplications of documents, from invoices to bills of lading, warehouse receipts and purchase orders, before deciding to finance them, GTR can reveal.

The proof-of-concept initiative, which is now underway, brings fintech company MonetaGo’s Secure Financing platform onto Swift’s API-enabled infrastructure, which Louise Taylor-Digby, Swift’s global head of trade strategy, says will provide its community of financial institutions with an “important tool to combat financing fraud at the international level”.

“Finance fraud in cross-border trade cannot be fully mitigated with local registries, so it makes perfect sense to leverage Swift’s global reach to help institutions around the world to solve this problem,” she says. “By bringing global API standards, identity and security, Swift can help to mitigate against the growing challenge of digital islands.”

MonetaGo’s solution has been in full production since 2018. On the platform, lenders register select document information, prior to disbursement, to the network. Key information from each document is hashed to create digital fingerprints that guarantee privacy. These fingerprints are then pushed to the network, which acts as a secure unified data repository shared across all participants. If the same document is submitted to the network by multiple lenders, the system will reject or flag all duplicates after the first unique instance is marked as financed on the system.

So far, the company says it has processed over 1.8 million financings, via a series of partnerships.

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