Blockchain E-KYC Explored By Abu Dhabi Global Marketbr>
The Abu Dhabi Global Market’s (ADGM) Financial Services Regulatory Authority (FSRA) has teamed with UAE’s financial institutions to explore blockchain technology for an electronic Know-Your-Customer (e-KYC) utility.
Project participants include Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Al Ansari Exchange, Al Fardan Exchange, First Abu Dhabi Bank, and UAE Exchange. The group will develop a proof-of-concept (PoC) to decide the governance framework and the functional requirements of the e-KYC utility. The group is considering distributed ledger technology (DLT) to underpin the core functionality of the platform.
Richard Teng, CEO of the FSRA of ADGM, said banks and financial institutions are seeking more ways to meet KYC and anti money laundering (AML) requirements and standards. With increased deployment of technology, such as blockchain for KYC and the efficient management of digital identities, greater efficiency and cost-effectiveness can be achieved.
“The combined expertise and reach of the consortium means it will be able to deliver real benefits to the UAE’s financial services sector and cement Abu Dhabi’s reputation as a leading global financial hub,” said Teng. “We look forward to delivering meaningful results together in the KYC space.”
The UAE government has been actively driving blockchain initiatives to ease the lives of its residents. Last month, Smart Dubai director general Dr. Aisha Bint Butti Bin Bishr said they were aiming to complete the roll-out of over 20 blockchain applications this year.
The blockchain applications are in various fields. Some of them are in road and transport, energy, health, and education. The Dubai Police, Water Authority, Dubai Electricity, and the Knowledge and Human Development Authority were some of the organizations taking part in the blockchain pilot project.
In December 2017, the UAE’s central bank announced that it had been undertaking a joint task with the Saudi Arabian Monetary Authority (Sama) to make use of blockchain technology to issue a cryptocurrency for cross-border transactions.