Financial regulators and service providers are looking for the best and most cost-effective solutions to help the banks and other financial institutions comply with the rules and do business in a compliant regulatory environment.
As blockchain is already disrupting the conventional ways of doing businesses, thanks to its benefits in terms of enhanced transparency, faster procedures, decentralized and most importantly, cost-effective nature.
In essence, blockchain provides the solutions for the existing problems faced by financial institutions in terms of Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations. As the transactions in the blockchain system are immutable, they cannot be changed and altered, providing transparency regarding AML and KYC compliance.
Customer onboarding screening, enhanced due diligence, transaction monitoring, blacklist screening, change in customer prospect status are the areas where blockchain technology plays a crucial role in handling AML and KYC-related issues.
Customer names can be screened through the automated regulatory…