(Commonwealth_Europe) The International Chamber of Commerce (ICC) UK has urged the UK government to establish a national digital registry for trade documents, emphasizing that such a move could play a transformative role in reducing invoice fraud, broadening access to trade finance—particularly for small and medium-sized enterprises (SMEs)—and enhancing tax revenue collection. This proposal is a key component of a broader economic strategy unveiled by ICC UK in its recent growth plan, which outlines measures designed to unlock an estimated £25 billion in trade growth.
Central to the plan is the creation of a government-backed digital trade registry. According to a more detailed document seen by the Global Trade Review (GTR), this registry would be housed within the International Centre for Digital Trade and Innovation (iC4DTI). Launched as a public-private initiative in November of the previous year, iC4DTI is intended to function as a hub for digital trade development. The proposed platform would enable companies to upload and register their trade documents—including invoices—onto a centralized system, where the documents would be digitally verified for authenticity.
The system would serve multiple critical purposes. Offering a reliable, real-time source for financial institutions to confirm the legitimacy of invoices would help eliminate the risk of duplicate financing—where a single invoice is financed by more than one lender, often without the others’ knowledge. This kind of fraud is a known vulnerability in the trade finance ecosystem and presents a significant barrier to investor confidence. Chris Southworth, Secretary General of ICC UK, underscored the simplicity and power of the proposed platform. He explained that the registry would function as a publicly visible space where companies post their invoices, allowing banks, investors, and non-bank lenders to view and assess them directly. This visibility would, in turn, significantly enhance businesses’ access to finance, especially SMEs that often struggle with proving credibility to financial institutions.
The urgency of such a system becomes clear when viewed against the backdrop of the UK’s current vulnerability to invoice-related fraud. A 2023 study conducted by fraud detection software company Lenvi revealed that the UK has among the highest levels of circumstantial invoice fraud in Europe. According to the survey, 35% of UK respondents reported encountering invoice re-aging—where invoice due dates are manipulated to mask payment delays—while 37% had seen instances of double funding, where the same invoice is financed by more than one party. These figures outpace those reported in comparable economies such as France, Spain, and Germany, highlighting the particular risks faced by UK-based lenders and businesses.
A centralized, digital registry that combines invoice records with collateral data could nearly eliminate these types of fraud, according to Oswald Kuyler, a digital standards advisor for ICC UK. Kuyler emphasized that such a system would not only strengthen the overall financial security of the UK trade system but also significantly improve tax oversight and compliance. By integrating tax reporting functions into the platform, the registry would allow HM Revenue & Customs (HMRC) to access and monitor commercial transactions in real time. Such an arrangement would provide a powerful new tool for reducing the UK’s VAT gap, which is currently estimated at £8 billion.
ICC UK has estimated that establishing the registry would cost between £15 million and £20 million over three years. It has been proposed that the initial funding be sourced from the Department for Business and Trade, with additional backing from the Cabinet Office and HMRC. Industry stakeholders would also be expected to contribute to the platform’s development and operation. The organization cites successful precedents in other countries to bolster its case. For example, India’s national invoice registry has been credited with improving tax collection and curbing invoice fraud. Singapore’s digital registry, introduced following a series of major fraud scandals, has evolved to include bill of lading verification and has played a role in fostering economic growth.
Kuyler pointed out that both banks and government authorities should benefit from the development of the UK version of the platform. The registry could streamline financial processes for lenders while giving tax authorities better tools to enforce compliance and detect irregularities. Southworth believes the registry should be integrated into the UK government’s “Plan for Change,” a policy initiative launched in January that pledges to accelerate economic reform and growth. He is currently involved in discussions with government departments to gain support for the proposal.
However, Southworth pointed out that the success of the initiative hinges on strong backing from both financial regulators and government institutions. He stressed that without the endorsement of the Financial Conduct Authority (FCA), the Prudential Regulation Authority (PRA), and key government departments, banks are unlikely to commit to building or utilizing new market infrastructure. Regulatory and political alignment is essential to encouraging institutional buy-in and establishing trust in the system.
Beyond the trade registry itself, ICC UK’s broader growth plan includes several complementary proposals aimed at modernizing and digitizing the UK’s trade ecosystem. Among these is the creation of “digital trade superhighways” with key international partners such as India, France, and Singapore. These superhighways would ensure that digital processes and trade systems are interoperable across borders, improving efficiency and transparency in global trade transactions. The plan also advocates for regulatory changes that would allow trade finance to be treated as a distinct, low-risk asset class—thereby qualifying for more favorable capital requirements and making it more attractive to institutional investors.
Altogether, ICC UK’s proposals aim to modernize the UK’s trade infrastructure and position the country as a global leader in secure, digital trade practices. By integrating technological innovation with regulatory reform, the organization believes the UK can both mitigate financial risk and unlock substantial new avenues for economic growth.
