Singapore, Cambodia to Launch Financial Transparency Corridor for SMEsby Fintech News Singapore July 12, 2023
The Monetary Authority of Singapore (MAS) and the National Bank of Cambodia (NBC) will set up a financial transparency corridor (FTC) initiative to facilitate trade and cross-border related financial services between small and medium-sized enterprises (SMEs) in both countries.
FTC allows Singapore and Cambodian financial institutions to share information on SME buyers and sellers to facilitate cross-border trade and financing.
This information can help SMEs access broader digital trade networks such as the Business Sans Border Proxtera global network and provide them with greater trade connectivity within ASEAN and other growth regions.
The FTC also aims to support financial institutions’ loan assessments for trade financing and an SME’s compliance with anti-money laundering rules to mitigate risks and potential trade disputes.
Sopnendu Mohanty, Chief Fintech Officer at MAS said,
“The Financial Transparency Corridor will support open trade flows for businesses, in particular SMEs, through enhancing financial trust data for financial services between Singapore and Cambodia.
This will lead to closer partnerships between our financial centres for better products and innovative solutions, and stronger growth together for our economies in the global digital economy.”
Dr. Serey Chea, Deputy Governor, NBC said,
“In March, Singapore and Cambodia collaborated on cross-border sharing of individual consumer credit profiles that makes it easier for citizens from both countries to access financial services in their country of residence.
We are also excited to take part in the creation of the Financial Transparency Corridor, which will further extend the two countries’ cross-border information sharing to businesses and SMEs.”