UAE unveils ‘UAE Trade Connect’ to combat economic crimes nationwide

UAE unveils ‘UAE Trade Connect’ to combat economic crimes nationwide

With the cases of economic crimes in the country gradually rising, the United Arab Emirates has recently launched a novel blockchain-based network, called UAE Trade Connect, to fight money laundering and fraud in trade finance.

For the record, the distributed blockchain network has been developed by UAE-based telecommunications firm Etisalat in alliance with a consortium of seven local banks headed by the First Abu Dhabi Bank.

Reports have it that the Trade Connect system went live recently post six months of trials and it took almost two years for the alliance to realize the project right from concept to its delivery.

It has been reported that now that the trials are successfully completed, the preliminary program for UAE Trade Connect would focus on fraud detection, however not just limited to that. Official reports suggest that the proponents of the technology believe it can be expanded to cover a lot more, like detecting sanctions violations and money laundering.

As per a source close to the company, the blockchain network, in later years, could be developed to handle bills of lading, letters of bank guarantees and credit, all of which include working with custom authorities, governments, and ports.

Importantly, the documents, with the help of this network, can be certified with cryptographic hashes that can be audited and verified on a blockchain transaction.

Commenting on the recent launch, Zulqarnain Javaid, Head of UAE Trade Connect, cited that the revolutionary blockchain network stands out to be a game-changer for the trade finance space in the country.

Zulqarnain added that in later stages, the system would also be able to begin managing e-invoicing, enabling more partners to come onboard to bolster the security of trade to and from the UAE.

With UAE Trade Connect, fraudsters are likely to find it more difficult to committing crimes like attempting to receive payment multiple times for the same invoice. Moreover, the system is deemed to be quite easy with traditional paperwork, which is difficult to verify yet simple to counterfeit.

Source Credit: https://siliconangle.com/2021/04/19/uae-launches-trade-connect-blockchain-based-trade-finance-platform-combat-fraud/