Collaboration combines the reach, scale and reliability of SWIFT with IMDA’s efforts on technology and legal frameworks to accelerate trade digitalisation

SINGAPORE - MediaOutReach - 5 October 2020 - SWIFT and Singapore's Infocomm Media Development Authority(IMDA) today signed a Memorandum of Intent (MOI) to accelerate tradedigitalisation globally.

The MOI looks at offeringSWIFT's community of more than 11,000 financial institutions and corporates inover 200 countries and territories more efficient and cost-effectivecross-border paperless trade, without the need for multiple bilateral linkagesand siloed systems. Moving manual processes to digitally enabled ones alsocreates opportunities to shorten trade processing times and open uppossibilities for innovation such as new trade financing offerings to the tradecommunity.

Through this MOI, bothparties will work to combine TradeTrust, an interoperability framework that connectsvarious platforms for the exchange of digital trade documentation, with the SWIFTcommunity. TradeTrust provides proof of authenticity of documents and offers titletransfer through open-source software^[1].This functions alongside legal harmonisation to recognise these digitaldocuments. When paired with SWIFT's ability to securely transport industrystandardised electronic trade messaging, scanned hardcopy documentation anddigitally signed assets, this will pave the way for the seamless exchange ofelectronic trade documents around the world.

As an important globaltrade and finance hub, Singapore has been at the forefront of tradedigitalisation, partnering with various international organisations, governmentsand industry players to boost cross-border trade. This MOI further builds onIMDA's effort to bring in new partners to join this global trade digitalisationeffort. Earlier this year, IMDA signed a cooperation agreement with theInternational Chamber of Commerce (ICC) and 17 multinational firms to move fromexisting paper-based processes to digitally enabled ones.

Mr. Alain Raes, Chief Business Development Officer, SWIFT,said: "Thetrade ecosystem faces digital disruption and requires open standards, legalharmonisation and coming together as a community to address fragmentation,friction and risks. Our collaboration with Singapore's global TradeTrustinitiative allows us to play a central role in this effort, and we look forwardto working together towards a shared vision of a frictionless, dynamic, globaltrade ecosystem."

Ms Jane Lim, Assistant Chief Executive, IMDA, said: "International trade is the lifeblood of Singapore's economy. Singaporeis working with various partners internationally to develop an interoperabilityframework, TradeTrust, for the seamless and efficient exchange of digitalisedtrade documentation across different communities. We are pleased to partnerwith SWIFT to further develop a trusted, interoperable and global digital tradeecosystem."

Related Resources:

Annex A -- Quotes from participatingbanks

Annex B -- TradeTrust FactSheet

Annex A -- Quotes from participating banks

Under the Memorandum ofIntent, SWIFT and IMDA will work with a group of leading financial institutionsto support the community in its trade digitalisation efforts. Views from someof these financial institutions are captured below:

SriramMuthukrishnan, Group Head of Trade Product Management, DBS Bank:

"Collaboration is vital forthe health and resiliency of the global trade ecosystem. We remain committed tocollaborating in the development of interoperable digital trade solutions thathelp break down barriers for businesses of varying digital maturities toconduct trade digitally and seamlessly. DBS continues to engage ingame-changing initiatives with like-minded partners such as IMDA and SWIFT tobreak new grounds. For instance, DBS worked with SWIFT and IMDA toconceptualise a solution to facilitate the digital transmission of tradedocuments, including title transfers of electronic bills of lading on theSWIFT network leveraging TradeTrust. Such efforts will not only help generatethe momentum needed to effect a global shift from analogue to digital tradesystems, but also build on Singapore's ambition to become a global digitaltrade hub, facilitating trade flows between businesses and industries across anextensive network of countries."

VinayMendonca, Global Head Product, Propositions & Structuring, Trade andReceivables Finance, HSBC:

"An interoperable industryframework coupled with the SWIFT ecosystem could accelerate recent gains thatthe industry has seen in digitisation through a harmonised digital flow. We areexcited to work on this initiative that could scale the digitisation of trade,delivering better working capital management and efficiencies for our clients."

MerlinDowse, Global Product Manager, J.P. Morgan:

"We're looking forward tocollaborating with TradeTrust and SWIFT. There's still work to be done todigitise trade documentation globally but we're optimistic given the successfultesting of SWIFT FileAct and integration into our trade processing system atJ.P. Morgan."

MichaelSpiegel, Global Head of Trade, Standard Chartered Bank:

"We are excited to seeSWIFT and IMDA coming together to provide further boost to the digitalisationof documents in trade transactions. Standard Chartered, being a leading tradebank, has been at the forefront on usage of emerging technologies includingdistributed ledger, to move from paper based trade transaction to digitisedtransaction with more resilience, efficiency and transparency. We welcome suchan effort and are delighted to join the initiative which promises to makepaperless trade accessible to many more enterprises globally."

Download TradeTrust Fact Sheet: https://release.media-outreach.com/i/Download/93717

About SWIFT

SWIFT is a global member owned cooperative and the world's leadingprovider of secure financial messaging services. We provide our community witha platform for messaging and standards for communicating, and we offer productsand services to facilitate access and integration, identification, analysis andregulatory compliance.

Our messaging platform, products and services connect more than 11,000banking and securities organisations, market infrastructures and corporatecustomers in more than 200 countries and territories. While SWIFT does not holdfunds or manage accounts on behalf of customers, we enable our global communityof users to communicate securely, exchanging standardised financial messages ina reliable way, thereby supporting global and local financial flows, as well astrade and commerce all around the world.

As their trusted provider, we relentlessly pursue operational excellence;we support our community in addressing cyber threats; and we continually seekways to lower costs, reduce risks and eliminate operational inefficiencies. Ourproducts and services support our community's access and integration, businessintelligence, reference data and financial crime compliance needs. SWIFT alsobrings the financial community together -- at global, regional and local levels-- to shape market practice, define standards and debate issues of mutualinterest or concern.

Headquartered in Belgium, SWIFT's international governance and oversightreinforces the neutral, global character of its cooperative structure. SWIFT'sglobal office network ensures an active presence in all the major financialcentres.

About InfocommMedia Development Authority (IMDA)