The Monetary Authority of Singapore is collaborating with the National Bank of Cambodia on a new initiative establishing digital infrastructures to facilitate financial services between small and medium-sized enterprises.
MAS said the initiative will enable small and medium-sized enterprises (SMEs) access broader digital trade networks like the Proxtera global network, and provide greater trade connectivity.
The partners have signed a pact on the Financial Transparency Corridor (FTC), which will support the development of a consent-based digital infrastructure to facilitate information exchange between participating financial institutions.
In addition, it will also support loan assessments for trade financing and an SME’s compliance with anti-money laundering rules to mitigate risks and potential trade disputes.
This means, a Singapore financial institution, in assessing financing support for a Singapore buyer’s cross-border business with a Cambodian seller, can use the FTC to acquire "trusted information" from a Cambodian financial institution on the Cambodian seller.
Similarly, a Cambodian financial institution supporting a Cambodian seller can obtain trusted information on the Singapore buyer through the FTC.
MAS' Chief FinTech Officer Sopnendu Mohanty, said the FTC will support open trade flows for businesses through enhancing "trust data" for financial services between both the countries.
This will lead to closer partnerships between our financial centres for better products and innovative solutions, he added.
Singapore and Cambodia had earlier collaborated on cross-border sharing of individual consumer credit reports to easily access financial services.
