Dubai & Emirates NBD launches KYC blockchain data-sharing platform

Dubai launched its first blockchain backed KYC platform which will help businesses to open bank accounts in a more convenient manner.

By · Jul 29, 2020 . 5min read

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Photo by ZQ Lee on Unsplash

According to National, the Dubai government has launched its first KYC (know your customer) blockchain data-sharing platform. It has done so with the help of Mashreq Bank and Dubai International Financial Centre (DIFC).

The Department of Economic Development (DED) has launched the blockchain-based regulatory initiative with Emirates NBD. The latter is a government owned bank. Therefore, the bank holds the largest number of assets in the middle-east region. The new blockchain KYC platform will help businesses open bank accounts more efficiently. Previously, they relied on the paper-backed system.

The government had announced back in February of this year that it has formed a consortium with five major banks. They aimed to launch the first KYC blockchain platform. Fast forward six months, the DED now reports that more than 120 companies have already made use of the platform.

Arif Amiri, CEO of DIFC, released the following statement:

“This initiative provides financial institutions and businesses a platform in order to seamlessly undertake operations. As we enter a new period of growth and expansion, our core focus on fintech and blockchain are major steps on our journey towards transforming the future of finance.”

Efficient Risk Reduction platform

Credit rating agency Moody’s noted that the new platform would help in reducing the operational risks of local banks:

“The platform will facilitate faster and more secure on-boarding, and exchange of authenticated and validated digital customer data and documents through distributed technologies powered by blockchain. Thus ensuring improved compliance with local and international KYC regulations while reducing the risk of data theft.”

The network will make use of fin-tech firm Norbloc’s blockchain platform. They hired Gowling WLG to resolve the legal issues. The Accounting giant, Deloitte worked with the banks on program management.

The Dubai government is relentlessly working towards supporting emerging technologies.

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