Edition #40 - The Financial Transparency Corridor (FTC) Initiative
The Monetary Authority of Singapore (MAS) and the National Bank of Cambodia (NBC) recently forged a significant agreement by signing a memorandum of understanding (MOU) aimed at streamlining trade and cross-border financial services for small and medium-sized enterprises (SMEs) in both nations.
The #MOU was formally executed on July 11th and the initiative was named the Financial Transparency Corridor (FTC).
The primary objective of this initiative is to establish a secure and consent-based digital infrastructure that enables seamless information exchange between participating financial institutions in #Singapore and #Cambodia.?
This digital infrastructure will effectively facilitate the provision of cross-border financial services to SMEs. Additionally, it will assist financial institutions in evaluating loan applications for trade financing purposes and ensuring SMEs' compliance with anti-money laundering regulations. These measures are intended to mitigate potential risks and minimize trade disputes.
For instance, through the FTC, a #financialinstitution in Singapore can utilize the corridor to access reliable and verified information from a Cambodian financial institution. This information will be crucial in evaluating #financialsupport for a Singaporean SME engaged in business transactions with a Cambodian SME.
Similarly, a Cambodian financial institution that supports a local seller can also leverage the FTC to acquire trusted information about the Singaporean buyer.
By implementing the #financialtransparency corridor initiative, MAS and NBC seek to enhance transparency and foster secure financial relationships between SMEs in Singapore and Cambodia, thus fostering a conducive environment for cross-border trade and business activities.
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