Trade Connect is a fin-tech platform, developed on the basis of blockchain technology, has recently been launched successfully in the UAE. It is a platform that will be used for monitoring trade financing for the purposes of eliminating frauds associated with the trade finance sector.
Earlier, this technology was used globally by various crypto trading exchanges for mitigating the risks of crypto theft, scam, or any other associated risks. However, because of the project’s continuous success in curtailing the number of incidents, even the traditional sector too started to adopt blockchain technology. What this Trade Connect project does is that it provides intelligence information to its user and sends alert signals of possible risks.
Similarly, the project has been going live successfully in the global financial and business hub, United Arab Emirates. The intention of the Government and the business sector is to use the platform for eliminating financial crimes or white-collar crimes. The UAE Government also intends to eradicate risks attached to these crimes. For instance, under-invoicing or duplication are two of the most notorious risks which are affiliated with financial crimes.
Trade Connect has been introduced in UAE through companies such as Etisalat – a leading business house of UAE and the entire Gulf region. For the purposes of the project, Etisalat entered into a Consortium Agreement with Trade Connect. There are also 7 more members who are members of the consortium to the agreement between Trade Connect and Etisalat. All of these seven members are the financial institutions of UAE wherein First Abu Dhabi Bank has been nominated as the leading member.
It was also noted that the UAE Government had the project ready in October 2020. Since then several pilot tests of the project were conducted in accordance with the terms of the Consortium Agreement. After successful completion of mandatory tests, on Monday, 19th March 2021 the project was officially sent live.
It was informed that Consortium Members worked almost two years on the project. They wanted to do away with the project as early as possible.
Zulqarnain Javed, who is in charge of UAE Trade Connect, stated that the platform is ground-breaking innovation within the trade finance sector.
For the time being, the project’s foremost task is to detect and determine frauds relating to trade finance in UAE. The developers of the project are of the view that the platform is also equipped to point out money laundering as well. However such services along with sanctions-busting will be done in the second phase of Trade Connect’s operations.
Javed stated that the platform is capable of multi-tasking and will be utilized to its fullest capabilities after the successful completion of phase 1. For instance, he wants the platform to look into L/Cs, Bank Guarantees, Bills of Lading, and other instruments of trade.