Revolutionizing Anti-Money Laundering Controls: Pakistan Banks Adopt Blockchain-Based e-KYC Platform
The Pakistan Banks Association (PBA) the trade association for all banks in Pakistan has signed a contract with Avanza Group a company that specializes in advanced banking applications customer experience management solutions **blockchain and artificial intelligence. ** The electronic platform will be used by banks to exchange personal information of customers through a decentralized and self-regulated network. The implementation of the electronic KYC system is part of the State Bank of Pakistan's (SBP) efforts to strengthen the country's anti-money laundering (AML) and counter-terrorist financing (CTF) control infrastructure. The Consonance e-KYC platform designed by Avanza uses blockchain technology to enable banks to standardize and exchange personal details via a decentralized and self-regulated network with the consent of customers. The Bank of Pakistan (BOP) is taking a leap forward with its blockchain-based AML platform, which will allow participating banks to assess their existing and new customers using the data from KYC checks performed by other participating institutions.
The PBA emphasized that in addition to strengthening AML controls this deployment will bring about efficiencies at participating banks. This move reflects the growing interest in blockchain technology and its potential to solve many problems. While Reza Baqir sees few good use cases for cryptocurrencies he acknowledged the usefulness of blockchain technology . This project is a clear example of how blockchain technology can be used to improve AML controls minimize onboarding costs and enhance customer experience--all of which ultimately promote financial inclusion in Pakistan.
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It is good to see more and more countries adopting blockchain technology in favor of transparency and security.