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An international financial free zone in the capital of the United Arab Emirates (UAE) has concluded the first phase of the utility project Know Your Customer (KYC) based on blockchain, according to a press release by ADGM on December 4th.
The Abu Dhabi Global Market Regulatory Body (ADGM), the Financial Services Regulatory Authority (FSRA) and the "Big Four" KPMG auditing firm have published a review of the first "successful" phase of the project to provide important tips for members of the financial sector.
The review outlines the development of the project over a four month period, together with a consortium of major financial institutions based in the UAE, including Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, First Abu Dhabi Bank and others.
The FSRA review of KYC legacy systems has characterized them as "cumbersome, repetitive and expensive", providing financial institutions with inefficient information sharing between silenced data sets, hampering KYC compliance and anti-money laundering (AML) ).
It was discovered that a blockchain-based system "radically simplifies" the KYC process by providing an "immutable audit trail, secure and uninterrupted data sharing", which could also allow individual customers to decide how their personal data are shared in the utility, in maintaining data protection (GDPR) and customer consent requirements.
As the review outlines, the use of cryptography and digital signatures, among other features, can help create a secure, unified and cost-effective way to support robust KYC standards across the industry.
The magazine also proposed the possibility of developing a commercial model of the project that could offer a commission-based reward system to incentivize data contributors for uploading and updating data and for charging to consumers. of data for access.
Richard Teng, CEO of ADGM's FSRA unit, said the blockchain-based e-KYC project "demonstrated tangible benefits" and would be able to "achieve significant increases in costs and financial inclusion driven by standards KYC unified ".
After the successful first phase of the blockchain-based KYC project, FSRA says it is now planning to launch its next phase, which will aim to facilitate the access of small and medium-sized businesses to banking services.
As reported two days ago, 26 French companies and five major banks have just completed a KYC (PoC) concept test based on the Rope platform of the blockchain R3 consortium.
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