The management of the Abu Dhabi Global Market (ADGM), the international financial free zone in the United Arab Emirates, said that the company has successfully completed the formation of a blockchainBlockchain
is a continuous and sequential block chain of information (digital linked list). When building a blockchain, copies of related blocks are simultaneously stored on multiple computers.Details application "Know Your Customer" (KYC) – as reported on the official website of the Abu Dhabi Global Market.
"Know your customer" or know your customer (KYC) is a term for banking and stock exchange regulation, which means that companies must identify a counterparty before conducting a financial transactionTransaction
– is a financial term that means a logically meaningful operation that can only be carried out completely. Details.
The ADGM announced on Tuesday 4 December that the first phase of testing was completed thanks to the regulatory body, the Financial Services Regulatory Authority (FSRA) and the consultant to the KPMG project.
KYC application and blockchain technology
The KYC application provides financial institutions with a single place where customer identification and verification can be performed once for each customer. Subsequent updates occur without deleting previous blocks. Unlike analogs, where information can change several times by different "subjects" for the same client base.
Key features of the application are a constant audit trail and secure data exchange. All entered data comply with the rules for reporting on GDP in the EU. During testing, it was found that the KYC process, which is currently "cumbersome, repetitive and expensive", can be "radically simplified" using blockchain technology. The tested institutions were able to successfully share and verify the KYC documentation, as well as update their customer data on the pilot prototype of the future ecosystem.
"Using the capabilities of technologies such as blockchain, the e-KYC project has demonstrated tangible benefits that can be offered by the e-KYC utility for financial institutions in the UAE" – Richard Teng, CEO of ADGM’s FSRA.
The project was first launched in test mode in February of this year for a consortium of large financial institutions in the UAE. Then took part: the commercial bank of Abu Dhabi, the Islamic Bank of Abu Dhabi, the First Bank of Abu Dhabi and others.
Currently, the FSRA is planning the second phase of the KYC project to facilitate access for small and medium-sized enterprises. The development of the "Know Your Customer" (KYC) blockchain application by the global marketplace of Abu Dhabi may mean a new round in the development of the global economy.
Editor: Yuliya Soroka
See also: "MediBloc: US hospitals use blockchain"