Digital registry in Singapore to prevent trade fraud

In a joint statement issued yesterday, DBS and Standard Chartered said they were leading a group of 12 other banks in Singapore to create and conduct a secure central database for the banking industry to access records of trade transactions financed across banks here.

SINGAPORE: Some of the world’s biggest banks in commodity trade financing are creating a digital trade finance registry (TFR) in Singapore to try and mitigate the risk of trade fraud and boost transparency after losing billions of dollars due to a spate of defaults.

Banks have reduced their commodities business this year to cut risk following collapses, including that of Singapore’s Hin Leong Trading, which shocked lenders after instances of financial trouble were laid bare by the Covid-19 crisis.