HSBC, MUFG complete PoC for KYC services using blockchain

Tuesday 3 October 2017 00:56 CET | News

HSBC, Mitsubishi UFJ Financial Group (MUFG), and OCBC Bank have completed a proof of concept for a know your customer (KYC) blockchain.

The Infocomm Media Development Authority (IMDA) also took part in the project, building thus the first South Asian consortium to complete blockchain tests for combating anti-money laundering (AML) and the financing of terrorism (CFT).

The existing KYC process consists of submitting a set of identification documents each time an individual or corporate customer starts a new relationship with a bank, according to the consortium. Nevertheless, this manual process could lead to inconsistent information being collected by banks and customer information not being promptly updated.

But because KYC blockchain runs on a distributed ledger technology (DLT) platform, information recorded can be better structured, accessed and shared across a distributed network using “advanced” cryptography. Also, customers’ information encrypted on the shared ledger can be validated by referring to government registries, tax authorities and credit bureaus.

The prototype’s performance was tested between February and May 2017 for its functionality, scalability and security. They revealed the results today (3 October).

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Keywords: KYC, PoC, AML, CFT, blockchain, HSBC, Mitsubishi UFJ Financial Group, MUFG, OCBC Bank, Asia
Categories: Blockchain & Cryptocurrencies | Cryptocurrencies
Countries: World
This article is part of category

Blockchain & Cryptocurrencies