Abu Dhabi Global Market (ADGM), an international financial free zone within the United Arab Emirates, says it has successfully completed the trial of a blockchain-based know-your-customer (KYC) application.
ADGM announced Tuesday that the first phase the project has been concluded in association with its regulatory body, the Financial Services Regulatory Authority (FSRA), and project advisor KPMG.
The KYC app provides financial institutions with a single location where customer identification and verification can be performed once for a customer, rather than multiple times by different entities for the same customer, ADGM explained. Key features of the app, it adds, are an unalterable audit trail, secure data sharing, compliance with the EU’s GDPR data privacy rules, interoperability with third-party systems and customer consent.
The trial found that the KYC process, which is currently “cumbersome, repetitive and cost intensive”, can be “radically simplified” using distributed blockchain tech. Institutions were able to “successfully” share and validate KYC documentation and data updates about their clients on the prototype in a “secure” environment”, ADGM said.