Trade Finance Forum › Forums › Market Regulations › Risk Analysis › Is it possible for fraudsters to be shut out of the trade finance industry? › Reply To: Is it possible for fraudsters to be shut out of the trade finance industry?
Yes. It is possible to shut fraudsters out of the trade finance business completely.
The International Chamber of Commerce (ICC) UK, the Centre for Digital Trade and Innovation, and MonetaGo have put out a white paper called “”Shutting fraudsters out of trade”” to help stop fraud and give advice to banks, trade associations, governments, and regulators.
To improve cross-border payments, banks are encouraged to strengthen the ICC Trade Register, add data authentication to their processes, collect the minimum trade metadata from commercial invoices and title documents, verify the ecosystem, and take part in the G20 roadmap.
Trade associations should make more people aware of how fraud affects businesses and banks. They should also make more people aware of the G20 roadmap to improve cross-border payments.
Adopting existing technologies like Legal Entity Identifiers (LEIs), digital ledgers, invoice number tracking, APIs between revenue departments and banks, and regulators allowing banks to share fraud data will help shut fraudsters out of the system.