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1. On 11th July 2023, a Memorandum of Understanding (MoU) was signed between the National Bank of Cambodia (NBC) and the Monetary Authority of Singapore (MAS) to collaborate on a Financial Transparency Corridor (FTC) initiative. Through this initiative, small and medium-sized businesses (SMEs) in Singapore and Cambodia will be benefited with enhanced cross-border financial services between them through the establishment of supporting digital infrastructures.

2. The FTC can be utilised by a Singapore financial institution to obtain reliable information from a Cambodian financial institution on a Cambodian SME seller that a Singapore SME buyer wants to do cross-border business with. Vice versa, the FTC can be utilised by a Cambodian financial institution supporting a Cambodian seller to gather reliable information on a Singapore buyer. The ability to obtain reliable cross border information enhances the information flow. In turn, this helps SMEs in both countries to access broader digital trade networks and greater trade connectivity within ASEAN and other growth regions.

3. The supporting digital infrastructures aims to support the provision of cross-border financial services to SMEs through establishing a consent based digital infrastructure to enhance information exchange between financial institutions in both countries. Reduce risks and potential trade disputes, support financial institutions’ loan assessments for trade financing and an SME’s compliance with anti-money laundering regulations.

4. “We are excited to partner with NBC to create the Financial Transparency Corridor, a first for our engagements in Asia. 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.” – Mr. Sopnendu Mohanty, Chief FinTech Officer, MAS.

5. “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. SMEs are the backbones of the Cambodian and Singaporean economies and their abilities to access financing beyond the border will greatly help them grow their operations and better contribute to both countries’ economic growth.” – Dr. Serey Chea, Deputy Governor, NBC

If your company needs help filing taxes for the year 2023, or requires assistance with Singapore incorporation, economy, banking, etc., feel free to call/WhatsApp us at +65 90612851 or email us at aceglobalacct@gmail.com. Alternatively, you may leave us a reply using our contact form below.

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