J P Morgan has entered into a global strategic alliance with California-based artificial intelligence (AI) and machine learning (ML) platform Cleareye.ai to digitise trade finance due diligence processing.

The alliance aims to streamline the bank's letter of credit (L/C) documentation examination processing and provide a rules engine to supplement Uniform Customs and Practice for Documentary Credits (UCP) and International Standard Banking Practice (ISBP) rules.

Leveraging AI and ML

Cleareye will work with the bank's trade and working capital group to streamline the onerous due diligence processing associated with trade finance transactions and the multitude of physical documents prevalent in the industry today.

The alliance leverages the Californian fintech's ClearTrade digital solution which over the past year has been integrated into J P Morgan's trade processing system and is now live supporting transactions in the Asia-Pacific region. A global rollout is planned.

L/Cs, UCP and ISBP

The solution employs smart interpretation to digitally interpret data and documents to automate L/C document examination.

A contextual and configurable rules engine to supplement existing UCP and ISBP rules is also provided for in the solution.

TBML and sanctions

It also aims to identify trade-based money laundering (TBML) and sanctions red flags and provide seamless integration into any existing trade finance back-office platforms.

According to global head of J P Morgan's trade and working capital group, Stuart Roberts, the ClearTrade platform "helps us to accelerate and future-proof our clients' business while reinvesting savings into enhancing controls and risk management."

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.