As part of efforts to prevent money laundering and terrorism financing, teh Singapore customs, Monetary Authority of Singapore and financial institutions as a joint partnership created a service, the Trade Finance Compliance (TFC).
“The new service is said to help banks to solve their inability to validate the underlying trade and lack of reliable data to conduct price checks for non-commodity goods”, Singapore customs said. Trade Finance Compliance will use the data derived from permits issued by Singapore customs and allow the financial institutions to reference such information to augment their checks. Traders can give their content on the Networked Trade Platform (NTP) for data to be shared with the financial institutions of their choice, to make sure that there’s a proper data governance, reported by Business Times.
According to Gillian Tan, executive director, Financial Markets Development Department, MAS: “The TFC service will increase the efficiency and accuracy of finance compliance checks for financial institutions in Singapore through digitalisation. As a result, these financial institutions will be able to better assess fraud and mitigate risks associated with trade-based money laundering.”
The financial institutions that have signed up for TFC service are:
- BNP Paribas
- DBS Bank
- MUFG Bank
- OCBC Bank