KYC data sharing consortium to launch on a blockchain in Dubai

KYC data sharing consortium to launch on a blockchain in Dubai

A new alliance, between Dubai International Financial Centre (DIFC), Mashreq Bank and technology firm Norbloc is set to launch the first blockchain based Know Your Customer (KYC) data-sharing consortium in Dubai in 2020. The association is set to be the first of its kind in the MEASA region.

The said Memorandum of Understanding (MoU) amongst the three corporate entities was entered into in January 2019. The organizations are planning to jointly launch the consortium within the first quarter of the year in 2020, according to the report made on July 31 by Emirates News Agency.

The data-sharing consortium is aimed at creating a single digit KYC record which can be authenticated in subsequent transactions with the use of an electronic identity. The innovation will facilitate faster and more secure exchange of documents between businesses and corporations by leveraging on blockchain’s advanced technology. It will also enable its users to share data with other financial institutions.

Additionally, the consortium will, as part of the project, formulate agreements tailored to integrate the KYC efforts of future participating financial institutions and government bodies.

In applauding and appreciating the potential of the initiative, Arif Amiri, the CEO of the DIFC Authority observed:

This initiative provides a unique opportunity to harness innovative technology to deliver a seamless experience for both newly established and existing companies at the centre.

The Dubai International Finance Centre and Mashreq Bank are set to be the inaugural members of the association in the piloting stage. However, the consortium is designed to open up to any qualified financial institution or licencing authorities.

It is protracted that by the end of the first quarter of the year 2020, the member companies will be able to digitally create a single KYC record, which upon authentication by an electronic ID, will simultaneously share data with the various financial institutions and other institutions on board.

New to blockchain? Check out CoinGeek’s Blockchain for Beginners section, the ultimate resource guide to learn more about blockchain technology.