In a recent revelation, UAE is all set to go live with a blockchain-based trade finance platform, Trade Connect to Counter Fraud Risks. They are focusing on initially cutting down under-invoicing and then taking on money laundering.
UAE Rolls Out a Trade Finance Platform With Trade Connect
In accordance with the recent revelation, UAE has rolled out a trade finance platform with the intention of stamping out imposters and financial crime risks.
The UAE Trade Connect brings together Etisalat, the telecom giant, and a consortium of seven leading local banks, led by the First Abu Dhabi Bank, FAB.
The system went live on April 19, Monday after about six months of trials and the project took a total of two years from concept to actual delivery.
In addition to this, the fintech division of the UAE Central Bank was also a member of the leading committee that overlooks the model.
Apart from this, the other four banks are likely to join shortly, and Trade Connect will also be synchronized with similar initiatives such as Marco Polo and Komgo.
Changing Dynamics of the Trade Finance Space
Trade Finance is going to be de-risked with the UAE Trade Connect going live and there are over seven banks that are a segment of the consortium and even more are going to sign up.
The Head of the Trade Connect, Zulqarnain Javaid said:
“It will be a game-changer for the trade finance space.”
At present, the platform is actively into fraud detection within the trade finance space, but the promoters expect it to evolve into e-invoicing.
The officials added:
“But e-invoicing will need us to work with multiple partners,” said Javaid. And in time, the UAE Trade Connect can go to handle bills of lading, letters of credit and bank guarantees, which will involve working with ports, customs authorities, and governments.”