2 December 2016
How Blockchain Helps Achieve More Efficient Regulatory Compliance
By Cliff Moyce
The FCPA Blog features Cliff Moyce, Global Head of the Finance Practice at DataArt, as he explores the applications of blockchain technology in the regulatory compliance processes.
“Blockchain’s immutability lends itself to proof-of-process for compliance; e.g., keeping track of the steps required by regulation... Recording actions and their outputs immutably in a blockchain would create an audit trail for regulators to verify compliance.
Perhaps more importantly, regulators could have read-only and near real-time access into the private blockchain of financial organizations…Such a change could reduce dramatically the time, effort and cost that financial institutions spend on regulatory reporting, as well as improve the quality, accuracy and confidence in the process.
A further possible extension is blockchain being used as a digital identity management grid, with all of the information required for screening and compliance being held about individuals and/or firms in a chain. This would reduce KYC/AML (know your client / anti-money laundering) processes to simple automated checks of a blockchain-powered, market-wide utility.”