Driving Transparency and Compliance: An Insightful Conversation with FiNext Awardee – Clarency Singapore

Clarency Singapore FiNext Awardee Interview
Clarency Singapore Finext awardee shares its thoughts on Driving Transparency and Compliance via interview .

In today’s rapidly evolving financial landscape, the importance of transparency and compliance cannot be overstated. Enter Clarency Singapore, a pioneering company at the forefront of driving transparency and ensuring compliance in financial transactions. With their innovative solutions and groundbreaking technology, Clarency is reshaping the way financial institutions operate, providing a secure and transparent environment for businesses and customers alike. In an exclusive interview, we had the privilege of speaking with Clarency Singapore to delve into their participation in the FiNext Conference and how winning the award has contributed to their professional development and business growth. Join us as we uncover their unique insights and learn more about the impact of their revolutionary transparency solution on the industry.

How did participating in our conference and winning the award contribute to your professional development or business growth?
Clarency’s development to its current status has been largely unrevealed. Our approach has been to develop and hone our services to a deliberately restricted client base. This has allowed us to scale our operations while refining our offering to match proven market needs. One direct result is that we’ve also been able to fund development from revenue rather than investment, moving to profit in our first year of operation. Three years on, this stage is complete and we’re ready to handle the demands of a much wider client base. This award sets a major milestone in our expansion and development plan.

What prompted you to participate in the FiNext Conference?
Initially because its timing was perfect. Just as we were looking for a platform to begin marketing our solution, FiNext Dubai popped into the calendar. As we looked further into the event, we liked its aims and target market. The cybersecurity award was very well targeted towards our goals, and so we selected the event as our first move into the public spotlight.

Can you share your thoughts on the organization and execution of the conference, including the award ceremony? Were there any standout moments or areas for improvement?
This was a far more personal experience than most conferences. Even though, because of the timescale, we were unable to do no more than send a delegate to the event, I received first-class communications and help. The award turn-around was exceptionally rapid and slick – and obviously we were delighted by the outcome!

What specific benefits or opportunities have you gained as a result of winning the award? Has it opened doors for collaborations, partnerships, or increased visibility?
It’s too early to say yet what directly attributable results have ensued, though I’m confident that these will come. One immediate benefit, however, has been that it provides a topic for re-contacting potential clients, with a third-party provenance to our offering. Our PR exploitation of the award is just beginning, of which more later.

How would you describe the overall impact of the conference and award ceremony on your industry or community? Did it create a meaningful platform for networking and knowledge-sharing?
It’s an excellent pin on which to hang the importance of our solution. As we release news stories concerning the award, by definition we reveal elements of what our solution is and what it delivers. As such, it’s a vehicle for gaining attention to how transparency can be improved and defining Clarency as the enabler for its achievement.

Can you explain how Clarency Singapore’s AML/ATF/KYC payments and liquidity service helps banks and regional SMEs in ensuring compliance with regulations? How does the service enhance transparency in financial transactions?
The payment instruction section of the SWIFT message lacks the capacity to communicate detailed information about the transaction. For full transparency, all parties to the instruction need to know payer, payee (and any other counterparties such as ultimate beneficiary, correspondent, originator and so on). They also need to know the nature of the goods or service concerned. To meet Clarency’s criteria for transactional diligence, we also record company background (marketplace, associations, history etc), rationality of market prices and shipping volumes, routing and much more. This can run into many gigabytes of data. Currently, where any of this data is shared at all, it’s commonly done by email and Excel spreadsheets, none of which are secure or intrinsically verifiable.

What is the unique technique used by Clarency Singapore to extend the 140 characters in the SWIFT MT103 field 70? How does this technique enable the inclusion of extensive diligence data in transactions?
Essentially, a link is placed in the SWIFT message, allowing authorised parties to access the information in an immutable blockchain ledger. The technology behind this link is highly complex and subject to a patent application. It embodies access control, data integrity, access auditing, expiry and many other factors to ensure absolute proof of truth alongside high-level data encryption, data protection, the right to be forgotten and legislative retention requirements.

How does the inclusion of full transaction details, such as shipping and market values, in the extended SWIFT MT103 field 70 contribute to transparency in financial transactions?
Any properly authorised organisation or individual can access full information for every transaction, ensuring compliance, transparent decision making and an immutable audit trail.

Can you provide examples of the types of diligence data that can be included in the extended field 70? How does this data benefit banks and NBFIs in their decision-making processes?
The information is effectively unlimited. It can contain multiple documents, including verified statutory documents such as passports. The data bank can be continuously updated with each new transaction, providing living compliance. Unexpected shifts in trading behaviour, transaction character or other variables can be detected thanks to full historic information. Most importantly, all this is available without the bank or NBFI needing to adopt new technology.

How has Clarency Singapore successfully implemented its transparency solution with established clients? Can you share any specific use cases where the solution has proven effective?
The solution is now in place with two of Clarency’s core clients, and will be rapidly extended to others within the next quarter. On two occasions within the last month alone, the richness of available data has allowed us to alert a client to potential malfeasance, preventing financial loss and possible regulatory penalties.

What are the main advantages for banks and NBFIs in adopting Clarency Singapore’s transparency solution? How does it address the limitations of legacy systems without requiring extensive changes?
All banks and most larger NBFIs use SWIFT as their core communications platform. Our solution allows them to continue in this, but gives them access to unlimited background information. The Smart Link replaces cumbersome and insecure e-mail and spreadsheets with audited, evidential data.

How does Clarency Singapore ensure the security and integrity of the diligence data carried in the extended field 70? What measures are in place to protect sensitive information and prevent unauthorized access?
This has been a crucial element of our development process. The Smart Link contains highly advanced compression and encryption techniques to identify the user and determine their real-time access rights. While the method will be protected by patent, our intention is to freely license its use to allow universal benefit.

Can you discuss the global rollout plan for Clarency Singapore’s transparency solution? What regions and markets are being targeted, and what challenges and opportunities are anticipated during this expansion?
While our initial target is international trade finance, we see many other applications for our solution. Our core focus remains to enable freer, safer trade for emerging economies isolated by instability or established-world distrust.

How does Clarency Singapore stay updated with evolving regulatory requirements and industry standards related to AML/ATF/KYC? How does the company ensure that its solution remains compliant with changing regulations?
While our existing service rests heavily on our AML/ATF/KYC  and KYCC capability, this solution is intended to be agnostic. We recognise that other compliance services exist, and in fact work with many major providers to deliver our own service. It’s a means of improving transparency within existing technology parameters, and shouldn’t be restricted to delivering the services of one company. Our responsibility, for this product, is to ensure that we meet the data protection and jurisdiction requirements of every region to which the solution is extended.

Describe how Clarency Singapore’s service has helped banks and regional SMEs improve their payment processes and liquidity management. Are there any specific success stories or measurable benefits that can be shared?
By integrating liquidity, payments and compliance into a single operation, we consistently deliver next-day payment in more than 100 currencies. Our liquidity and FX partners work closely alongside us to provide immediate, predictable availability and extremely low charges. For many clients we operate in/out ledgers that allow them to maintain a currency-independent balance (on which they receive a high return), allowing them to interchange payments and receipts without incurring FX losses.

What are the future plans and developments for Clarency Singapore? Are there any additional features or enhancements being considered for the transparency solution to further assist financial institutions?
Most certainly, yes! We have several important developments in train, of which more later

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