Programmable blockchain for corporate KYC & due-diligence

The problems

    Financial institutions (FIs) use the Know Your Customer (KYC) and Customer Due Diligence (CDD) system to identify “bad” customers and to assess the extent to which the customer exposes them to a range of risks (including money laundering, tax evasion & terrorism financing).

    While financial institutions are under pressure to cut costs, efforts to prevent money laundering and the financing of terrorism are costing the financial sector billions of dollars. Financial institutions are also exposed to huge penalties for failure to follow KYC guidelines. Costs aside, KYC & CDD can delay transactions and lead to duplication of effort between banks.

    The problems:

  • The KYC burden on corporates is being magnified by their high number of banking relationships.
  • Financial institutions’ lack of common KYC standards continues to create issues for corporates.
  • KYC procedures continue to lengthen client onboarding times.
  • Corporates are still not passing on all material changes.
  • The regulatory pressure on banks is being passed down to corporates by increasing the volume of KYC information required.
  • Verification is not portable.

The solution

    Primechain-KYC is a permissioned blockchain that enables intra-institutional and inter- institutional sharing of KYC and CDD information. Primechain-KYC is accessible through a web interface as well as through an application program interface (API).

    All records are stored in an encrypted form. The decryption credentials are distinct and separate for each record and are available only to the entity that uploads the record. This entity can share the credentials with any other entity.

    Some of the benefits of Primechain-KYC are that it:

  • removes duplication of effort, automates processes and reduces compliance errors.
  • enables the distribution of encrypted updates to client information in real time.
  • provides the historical record of all compliance activities undertaken for each customer.
  • provides the historical record of all documents pertaining to each customer.
  • Enables records to be used as evidence to prove to regulators that the bank has complied with all relevant regulations.
  • Enables the usage of data and records to identify entities attempting to create fraudulent histories.
  • enables the analysis of data and records to spot criminal activities.