Shinhan Bank Introduces 'Digital Inspection System for Foreign Exchange Transactions'

Improving Work Efficiency and Accuracy through Letter of Credit Review Automation

[Asia Economy Reporter Kwangho Lee] Shinhan Bank announced on the 31st that it has introduced the 'Foreign Exchange Transaction Digital Inspection System' across all foreign exchange transactions for the first time in the banking sector to secure competitiveness in foreign exchange transactions and strengthen risk management.

Shinhan Bank implemented automation of trade-based money laundering (TBML) inspection through digitalization of foreign exchange documents in November last year, and with the introduction of this foreign exchange transaction digital inspection system, it has established a letter of credit examination and global sanctions transaction automatic detection system utilizing accumulated foreign exchange big data-based artificial intelligence (AI) and document image character recognition (OCR) technology.

The letter of credit examination using AI and OCR technology analyzes digitally converted foreign exchange document data with AI to check compliance with the Uniform Customs and Practice for Documentary Credits and the conditions of the letter of credit, enabling inspection of discrepancies between foreign exchange documents and checking for missing essential documents.

Through this, Shinhan Bank expects to significantly improve the speed and quality of the letter of credit inspection process, which is an essential procedure for trade payment transactions, by automating the inspection work, thereby enhancing customer convenience.

Additionally, by establishing automatic detection technology for transactions with global sanction countries, the bank has prepared a mechanism to prevent global sanction risks that may occur during foreign exchange operations in advance, and plans to expand this to global channels worldwide.

A Shinhan Bank official stated, "Digital transformation is an essential task amid strengthened global foreign exchange transaction regulations," adding, "We plan to complete the digitalization of all foreign exchange operations through continuous upgrades in the future."

This content was produced with the assistance of AI translation services.