Banks in Pakistan agreed to develop a blockchain-based KYC system that will enhance anti-money laundering and counter-terrorist financing measures.
The Pakistan Banks’ Association (PBA) signed a project contract to develop a blockchain-based national banking platform for digital customer identification. The project is named “Consonance.” This was reported by the Daily Times. The initiative was led by the State Bank of Pakistan (SBP), and Avanza Group will develop the project.
The new blockchain platform will increase the efficiency of KYC procedures, enhancing the state’s ability to combat money laundering and strengthen measures aimed at countering the financing of terrorism. Additionally, the blockchain platform will improve operations when banks interact with customers, especially in the initial stages of interaction.
The PBA comprises 31 traditional banks, including international financial institutions: the Industrial and Commercial Bank of China, Citibank, Deutsche Bank, and others. The new blockchain platform will be used by all members of the association, making it possible to standardize the processing and exchange of customer data using a decentralized, self-regulated network.
It’s worth noting that banking structures around the world increasingly use blockchain to improve existing operational processes. For example, in March 2022, banks in Australia, Israel, and Canada formed an international alliance of banking innovation and attracted Ripple to help create innovative tools for cross-border payments.
