Abu Dhabi International Market, a global monetary free zone inside the capital of the United Arab Emirates, has concluded the primary section of its blockchain-based KYC challenge.
A global monetary free zone inside the capital of the United Arab Emirates (UAE) has concluded the primary section of its blockchain-based Know Your Buyer (KYC) utility challenge, in accordance with an ADGM press release Dec. 4.
The Abu Dhabi International Market’s (ADGM) regulatory physique, the Monetary Providers Regulatory Authority (FSRA) together with “Large 4” audit agency KPMG have printed a review of the challenge’s “profitable” first section as a way to present key takeaways for members of the monetary trade.
The evaluation outlines the challenge’s improvement over a interval of 4 months, along with a consortium of main UAE-based monetary establishments – together with Abu Dhabi Business Financial institution, Abu Dhabi Islamic Financial institution, First Abu Dhabi Financial institution and others.
FSRA’s evaluation of legacy KYC methods characterised them as “cumbersome, repetitive and value intensive,” offering monetary establishments with inefficient info sharing methods between siloed knowledge units, hampering KYC compliance and anti-money laundering (AML) monitoring.
A blockchain-based system was discovered to “radically simplify” the KYC course of by offering an “immutable audit path, seamless and safe knowledge sharing,” which may furthermore enable for particular person shoppers to determine how their private knowledge is shared within the utility, in step with knowledge safety (GDPR) and buyer consent necessities.
Because the evaluation outlines, the usage of cryptography and digital signatures, amongst different options, can contribute towards a safe, unified, and handy system for upholding strong KYC requirements throughout the trade.
The evaluation additionally proposed the potential of creating a business mannequin of the challenge that would supply a fee-based rewards system to incentivize knowledge contributors for importing and updating their knowledge, and charging knowledge shoppers for entry.
Richard Teng, CEO of ADGM’s FSRA unit, has stated the blockchain-based e-KYC challenge “demonstrated tangible advantages,” and would be capable of “obtain important price efficiencies and monetary inclusion pushed by unified KYC requirements.”
Following the profitable first section of the blockchain-based KYC challenge, the FSRA says it's now planning to launch its subsequent section, which is able to goal to facilitate small and medium enterprises’ entry to banking providers