The Singapore government launched a new government e-service, Trade Finance Compliance (TFC), on its Networked Trade Platform (NTP) in September 2019. The NTP under Singapore Customs serves as ne-stop trade and logistics ecosystem for Singapore linked to other platforms and provides a wide range of trade-related services. This new e-service is a result of a joint government-industry partnership between Singapore Customs, the Monetary Authority of Singapore (MAS) and leading financial institutions.
The platform aims to address compliance challenges faced by financial institutions when financing trade because of the inability to validate the underlying trade and the lack of reliable data to conduct price checks for non-commodity goods. Using data derived from permits issued by Singapore Customs, the TFC service will now allow financial institutions to reference such information to augment their checks for trade finance compliance. To ensure proper data governance, traders can give consent on the NTP for their data to be shared directly with financial institutions of their choice. “The TFC service is a valuable risk management tool.
By digitalizing the trade finance compliance check process and directly referencing pricing and permit-related customs data on Singapore imports and exports, the TFC is expected to increase the efficiency and accuracy of trade finance compliance checks for financial institutions in Singapore. As a result, these financial institutions will be able to better assess fraud and mitigate risks associated with trade-based money laundering.
Currently BNP Paribas, DBS Bank, ICBC, MUFG Bank, OCBC Bank and UOB have signed up for the TFC Service on the NTP. The NTP will be introducing a series of initiatives to link up the various parts of the trade ecosystem to enable all stakeholders to reap the benefits of digitalization, connectivity and interoperability.
(Sources: Singapore Customs; Business Times)