Operated by Global Technology`s subsidiary Fin-X, and jointly marketed by Fin-X and the African Commerce Exchange, the SWIFT Africa Bureau is giving financial institutions on the continent access to the worldwide S.W.I.F.T. communications network. Common Market for Eastern and Southern Africa (COMESA) says the unrolling of this state of the art world banking co-operative network across the 20 member states will not only boost the flow of financial transactions cross border and internationally but will- also meet COMESA`s stated desire to be proactive in harnessing high-tech and automated security solutions to protect the region`s banks and financial institutions from alarming world trends in fraud and money laundering.
While Africa might be perceived by some as a "cash-based" and the "nonbanked" continent, with ACE`s introduction of the S.W.I.F.T network, COMESA`s financial institutions will, in effect, be part of a network that supplies secure encrypted messages and a software interface covering 7 000 institutions in 192 countries. The average daily value of payment messages on the bank-owned S.W.I.F.T network is US$5 trillion. COMESA banks and financial institutions, using the bureau, have full access to S.W.I.F.T at a significantly discounted rate, due to ACE having negotiated a shared-cost model for the region.
Fin-X managing director Barry Botes says that secure financial messaging is a priority for COMESA, as a logical part of its drive to stimulate and grow trade in the region. He says, like other financial fraternities in the world, COMESA is aware of current factors like the trend for crime syndicates to operate internationally and become global in reach. At the same time, local financial sector regulators, in the wake of liberalisation, have had to cut budgets and have less muscle available to fight white-collar criminals. Supported by a 24-hour help desk for users, the bureau`s facilitation of electronic transactions between an increasing number of banks and financial institutions in the COMESA region will bring greater security to trade in the region. The daily reports, audit trails, and the ability to monitor and analyse any unusual transaction patterns are key factors.
Supported by a 24-hour help desk for users, ACE`s facilitation of electronic transfers amongst more banks and financial institutions in the COMESA region will bring new security - and a greater ability to monitor deviations in transactions - to users of S.W.I.F.T in the region. The daily reports, audit trails and the benefits of being able to analyse patterns in use - and to monitor any unusual payment patterns - which this automation add valuable security benefits.
"Electronic transfer is arguably the safest payment option available to banks and the most difficult for any would-be criminal to intercept. Clearly, the increased use of electronic transfers that ACE will enable has many new and potential security benefits for COMESA users," says Botes.
In addition to the security benefits of automation, outsourcing of functions - such as financial software systems and services - can improve security, explains Botes. A survey by Ernst & Young found that staff commits 82% of all fraud. Thus, says Botes, the implications of fraud patterns show that it is an advantage for a company wanting to tighten up security to outsource functions. "ACE is offering the option to COMESA users to outsource the maintenance and monitoring of the S.W.I.F.T network to us, as part of our service in the region."
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