DIFC (Dubai International Finance Centre), Mashreq Bank and Norbloc, a Stockholm based KYC platform on distributed ledgers, has announced their latest joint venture of launching a production-ready blockchain KYC data-sharing consortium. It marks the first time a blockchain would be used in Dubai to store and verify KYC data.
The landmark technology is to be launched by the first quarter of 2020. All corporates and businesses based in UAE can make use of it.
The collection of personal data by other means has proven to be ineffective time and again. It is also time-consuming and expensive. Previously, multiple paper-based KYC files had to be accessed to gain personal data of customers, making the process extremely slow.
When using a blockchain for the process, the customer can directly create a single KYC record, which will be authenticated using an electronic Id, from where the banks or any financial institutions can access it without any cost.
KYC verification using a blockchain has the potential to be faster and more secure. This can prevent bank fraud and money laundering to great extents. The CEO of DIFC Authority, Arif Amiri commented, “This initiative provides a unique opportunity to harness innovative technology to deliver a seamless experience for both newly established and existing companies at the centre.”
Norbloc would be the sole in charge of the technology while DIFC and Mashreq bank will ensure its implementation throughout the country.
Although currently Mashreq and DIFC are the only ones participating in the venture, it would eventually be open to all registered financial institutions and companies.